These firms consider Regal Beloit as a top pick, with a capable management team and impressive investment strategy. The firms are positive on the Company’s long-term thesis, which would result in stronger organic growth and margins. Other factors supporting their positive stance are new product trajectory, complementary product and distribution platforms, energy efficiency, cost synergies, lean six sigma principles, sales cycle and healthy balance sheet. Recent acquisitions combined with emerging market focus will lead to margin expansion and heating, ventilation and air conditioning (HVAC) up-cycle. According to the firms, Regal Beloit’s fundamental metrics are equivalent to its peers and the stock is trading at a discount considering the take-out premium being paid for other large motor businesses.
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