UPDATE: Goldman Sachs Initiates Regal-Beloit with Neutral on Near-Term Headwinds

In a report published Monday, Goldman Sachs analyst Samuel H. Eisner initiated coverage on

with a Neutral rating and $70.00 price target. In the report, Goldman Sachs noted, “We initiate coverage of RBC with a Neutral rating and $70, 12-month price target. As 50% of RBC's revenue is tied to the resi HVAC industry, we believe the company will benefit from an overall improvement in this market alongside continued positive momentum in housing starts, although at a pace slower than the market. We expect headwinds in the company's commercial and industrial (C&I) business alongside continued weakness in global industrial automation. Despite this, we believe the company's efforts to improve returns via increased acquisitions synergies and a more simplistic organization should pay off over time as volumes return.” Regal-Beloit Corporation closed on Friday at $64.84.