Wunderlich Sees Progress With Regal Beloit Corp

Wunderlich Securities changed its estimates on Regal Beloit Corporation RBC  Tuesday and maintained a Buy rating and $88 price target.

The report observed that "third quarter results reflect progress toward revenue growth with positive operating leverage."

Analyst Liam D. Burke noted that “concerns about the decline in C&I revenues, the longer than expected realization of cost synergies, and lower anticipated residential HVAC sales in the first half of 2015 have weighed on Regal's (RBC) shares.

“Despite near-term concerns, we would still expect organic sales growth with operating margin expansion in 2015.”

Regal reported EPS for the third quarter of $1.15, a 2.5 percent year-over-year decline. “EPS was $0.01 below our estimate of $1.16 and in-line with consensus, according to Burke.

The analyst report concluded by raising “adjusted EPS estimates for 2014 and 2015 to $4.37 and $4.97, respectively from $4.33 and $4.88, respectively.”

Regal Beloit Corporation recently traded at $70.20, up 0.27 percent.