UPDATE: Barclays Initiates Coverage On Rexnord, Raises Estimates
In a research note released Wednesday, Barclays analyst Scott R. Davis initiated coverage on Rexnord (NASDAQ: RXN) with an Overweight rating and a price target of $37.00.
The company is raising its earnings per share estimates to $1.70 from $1.65; the firm is also raising its 2016 estimates to $2.15 from $1.75.
The firm said that the timing of this report comes on the increased confidence in Rexnord's ability to execute on M&A and also drive up higher-than-expected operating leverage.
Barclays also stated that Rexnord has a strong operating foundation. It also stated, "In 2018, for example (calendar 2017), RXN thinks it has earnings potential in the ~$3 range, we see potential above that ($3.50-4.00 range)."
Shares of Rexnord closed at $27.14, up 4.99 percent.
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