rewrite this title and make it good for SEOKeyBanc lowers Regal Rexnord stock price target to $170 on near-term risks By Investing.com

Investing.com – KeyBanc has reduced its price target on Regal Rexnord Corp (NYSE:RRX) to $170.00 from $180.00 while maintaining an Overweight rating on the industrial manufacturer. The stock, currently trading at $139.26, remains below InvestingPro’s Fair Value estimate, with analyst targets ranging from $161 to $202.

The firm cited near-term risks ahead of Regal Rexnord’s third-quarter 2025 earnings, specifically pointing to softer trends in the company’s Power Efficiency Solutions (PES) and Automation & Motion Control (AMC) segments.

KeyBanc acknowledged Regal Rexnord’s “apparent conservatism” in its PES outlook, which implies approximately flat year-over-year performance in the second half of 2025 and likely assumes residential HVAC business will decline more than 20% year-over-year during that period.

The research firm also expressed concern about potential AMC segment improvement, noting persistent headwinds in the Medical sector and hesitation in Automation markets.

Despite these near-term cautions, KeyBanc maintained its Overweight rating, referencing the “attractive portfolio transformation and deleveraging catalyst” as longer-term positives for Regal Rexnord.

In other recent news, Regal Rexnord reported its second-quarter 2025 earnings, surpassing analysts’ expectations with an adjusted earnings per share (EPS) of $2.48, compared to the forecast of $2.44. The company’s revenue also exceeded projections, reaching $1.5 billion against the anticipated $1.49 billion. JPMorgan has initiated coverage on Regal Rexnord with an Overweight rating and a price target of $200, highlighting the company’s structural transformation towards high-growth markets. Meanwhile, Goldman Sachs has maintained its Buy rating on the company with a price target of $192, noting a mixed performance in various segments. The PES/IPS segments showed better performance, while the AMC division faced temporary margin pressures due to rare earth magnet availability issues. Additionally, Regal Rexnord announced the appointment of Kevin Long as the new Executive Vice President and President of its Automation & Motion Control segment, effective August 14, 2025. Kevin Zaba, the outgoing EVP, will remain until the end of the year to ensure a smooth transition. These developments reflect ongoing strategic changes and market performance within Regal Rexnord.

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