These firms with a neutral stance believe that acquisitions of GE motors and capacitors businesses brought a turnaround in the Company’s business, resulting in soaring sales, EBITDA, and EPS. They expect Regal Beloit to deliver productivity and margin improvement driven by Six Sigma, lean manufacturing, and global sourcing programs. According to the firms, the Company will benefit from emerging market growth, rebound in Europe, energy-efficient motor regulation, and FY10 acquisitions. The firms are also upbeat about product innovation, greater penetration, operating leverage, strong balance sheet and ongoing industry consolidation. The firms are, however, concerned about commodity price inflation, uncertainty in the HVAC end market, competitive pressures, loss of stimulus dollars, the probability of a slow economic growth in FY11 and the absence of yet another tax credit. The firms point out that current stock price incorporates the prospect over the next 12 months and that there is a lack of visibility on 1Q11 EPS trajectory and price/cost movements. Thus, the firms have adopted a neutral stance.