UPDATE: Oppenheimer Downgrades Regal-Beloit to Perform on Risk/Reward

Oppenheimer downgraded Regal Beloit Corporation

from Outperform to Perform and raised the price target from $76.00 to $78.00. Oppenheimer said, "We are downgrading the shares of RBC to Perform from Outperform, as we believe risk/reward has moved into balance. We note 2012 revenues likely end the year down about 8% organically (estimate up 11-12% reported) creating potential comparison tailwinds, continued progress on the EPC integration, RBC's expected outgrowth in many end markets (via new products, portfolio integration), and potential China recovery. However, competition remains active (perhaps especially in residential HVAC markets), China recovery could drive commodities inflation, and simplification strategies could take time, which could all conspire to pressure progress towards longer-term margin targets." Regal-Beloit closed at $74.03 on Wednesday.