Deutsche Bank initiated coverage on Regal Rexnord Corp (NYSE:RRX) with a Buy rating. The bank set a price target of $286.00.
This target suggests a potential upside of over 30% from the current share price. Analysts project a 20% upside to consensus adjusted earnings per share forecasts by 2030. The firm expects the company's relative multiple to expand as earnings growth improves.
Deutsche Bank applied a 20x target next-twelve-months price-to-earnings multiple for the valuation. However, the bank noted risks from deteriorating short-cycle industrial demand. Additional headwinds include RHVAC industry volume challenges and potentially stalling data center orders.