Professional
Added to YB: 2024-05-22
Pitch date: 2024-03-31
GTES [bullish]
Gates Industrial Corporation plc
+23.51%
current return
Author Info
No bio for this author
Company Info
Gates Industrial Corporation plc manufactures and sells engineered power transmission and fluid power solutions worldwide.
Market Cap
$5.6B
Pitch Price
$17.74
Price Target
N/A
Dividend
N/A
EV/EBITDA
9.83
P/E
23.99
EV/Sales
2.24
Sector
Machinery
Category
growth
FMI Funds Portfolio Holding: Gates Industrial Corporation plc
GTES: Leader in power transmission & fluid power solutions. Stock overhang from Blackstone's 27% stake, destocking & tough end markets pressure results but provide entry point. Markets largely replacement driven, reducing cyclicality. Targeting chain-to-belt conversions, personal mobility & auto aftermarket to drive 2x industrial production growth. Margin expansion via cost cuts & productivity. Trades 12x '24 P/E with re-rating potential given EPS growth & strong returns vs high-quality industrial peers.
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