KeyBanc Downgrades Regal Beloit (RBC) to Sector Weight

KeyBanc analyst Jeffrey Hammond downgraded Regal Beloit (NYSE: RBC) from Overweight to Sector Weight following recent share strength, driven in part by a Bloomberg report of a merger with RXN.

The analyst commented, "Our rationale is based on: 1) value creation via merger (beyond synergies) has been effectively priced in at current levels, implying NT downside should a deal fail to materialize; 2) company-specific risks, which come into focus as stocks/expectations rise; and 3) an evolving Value rotation, which is likely to shift away from early-cycle names, in favor of mid-cycle or deeper value assets. Together, these dynamics imply a lack of risk/reward upside, with shares of both RBC and RXN trading near all-time highs."

For an analyst ratings summary and ratings history on Regal Beloit click here. For more ratings news on Regal Beloit click here.

Shares of Regal Beloit closed at $137.45 yesterday.

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