Barclays on Rexnord Corp; PT of $37

In a research note released Wednesday, Barclays analyst Scott R. Davis initiated coverage on Rexnord Corp. RXN with an Overweight rating and a price target of $37.00. The firm has raised its price target to $37.00 from $26.00. In addition, 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 continued to say that the timing of this report comes on the increased confidence in RXN's ability to execute on M&A and also drive up higher-than-expected operating leverage. Barclays also stated that RXN 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 the company are up five perent today, and are up 13 percent year to date.