Gates Industrial

GTES · NYSE

$26.10+$0.17 (+0.66%)TodayMarket closed · Oct 20, 7:00 PM ET

Prev close $25.93

GTES analyst rating

BuyConsensus of 11 analysts over the last 12 months. 64% rate it a buy.

Strong buy0
Buy7
Hold4
Underperform0
Sell0

12-month price target · 15 analysts

Average $33.14 (+27.0% upside)

Low: $29.20
Now: $26.10
High: $40.95

Upgrades and downgrades

The latest rating actions, newest first

GTES analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
DA Davidson	Sep 1, 2026	Initiates	Neutral	$29.00	65%
Evercore ISI Group	Aug 11, 2026	Maintains	In-Line	$30.00 → $32.00	64%
Citigroup	Aug 3, 2026	Maintains	Buy	$33.00 → $35.00	63%
RBC Capital	Aug 3, 2026	Maintains	Outperform	$33.00 → $34.00	57%
JP Morgan	Aug 3, 2026	Maintains	Overweight	$32.00 → $34.00	27%
Wells Fargo	Aug 3, 2026	Maintains	Equal-Weight	$26.00 → $30.00	54%
Keybanc	Aug 3, 2026	Maintains	Overweight	$31.00 → $34.00	21%
Baird	Aug 3, 2026	Maintains	Outperform	$37.00 → $39.00	57%
RBC Capital	Jul 16, 2026	Maintains	Outperform	$30.00 → $33.00	57%
Morgan Stanley	May 29, 2026	Maintains	Equal-Weight	$27.00 → $28.00	68%

The case for and against

Updated Jan 19, 2026

Bull case

Gates Industrial Corp PLC demonstrates a solid foundation for growth, particularly in its Power Transmission segment, which has shown steady organic sales increases, albeit slightly below estimates, indicating resilience in its core operations. The company's successful launch of over 60 new product platforms has significantly boosted its new product introduction (NPI) metrics, with NPI growth rising from low single digits in 2017 to the mid-to-high teens by 2023. Additionally, the datacenter opportunity, with a growing pipeline approaching $150 million, alongside anticipated improvements in pricing realizations for the second half of 2025, positions the company favorably for future revenue growth.

Bear case

Gates Industrial Corp's recent financial performance reflects a negative outlook primarily due to a decline in organic sales across both its operating segments; specifically, the Power Transmission segment experienced a core growth reduction of -1.3% year-over-year, attributed to weak industrial OEM demand and lowered commercial truck production forecasts. Additionally, the company's 2Q25 organic sales fell by -0.6%, which was below both internal estimates and broader market expectations, while the Fluid Power segment also faced a decline of -2.5% year-over-year, compounding the overall revenue challenges. The company has encountered significant operational deleverage, with volume expectations falling approximately 600 basis points short over the past two years, leading to heightened margin pressures amid unfavorable market conditions.

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