Goldman Sachs maintains Buy rating, raises Regal Rexnord PT to $195.

Goldman Sachs maintains Buy rating, raises Regal Rexnord PT to $195.

Goldman Sachs has maintained its Buy rating on Regal Rexnord (NYSE:RRX) stock while raising its price target to $195. The investment bank made this announcement following Regal Rexnord's strong first-quarter financial results and strategic initiatives [2].

Regal Rexnord reported a robust Q1 2025 performance with adjusted diluted EPS of $2.15, up 7.5% year-over-year, and sales of $1.42 billion, showing 0.7% organic growth despite an 8.4% overall decline. The company achieved cash from operations of $102.3 million and free cash flow of $85.5 million, up 32.4%, and paid down $164 million in gross debt [2].

Goldman Sachs highlighted Regal Rexnord's strategic initiatives, such as the recent unveiling of new electro-mechanical actuator (EMA) subsystem capabilities for aerospace and defense applications, which align with the growing shift from hydraulic to electric aircraft design. The company's 75+ years of experience and comprehensive motion control portfolio make it a significant player in this market [2].

Additionally, Regal Rexnord has achieved a prestigious AS9100 certification for its Chihuahua, Mexico facility, further enhancing its operational efficiency and production capacity to meet rising aerospace component demand [2].

Goldman Sachs believes these strategic moves and strong financial performance position Regal Rexnord for continued growth, leading to the price target revision.

References:
[1] https://www.stocktitan.net/news/RRX/
[2] https://www.investing.com/news/analyst-ratings/goldman-sachs-reiterates-conviction-buy-on-baxter-stock-as-new-ceo-appointed-93CH-4125250