KeyBanc updates valuation
KeyBanc has raised its price objective for Regal Rexnord Corp (NYSE: RRX) to $255.00 from $200.00, while continuing to recommend an Overweight position on the stock. The new target, disclosed in a note from KeyBanc analyst Jeffrey Hammond on Tuesday, February 10, 2026, reflects a 27.5% increase over the previous bank target.
Earnings performance and prior target moves
The analyst revision arrives after Regal Rexnord reported fourth-quarter 2025 results that exceeded consensus expectations. The industrial manufacturing company posted adjusted earnings per share of $3.04 versus a forecast of $2.85, and recorded revenue of $461.6 million compared with an anticipated $460.07 million. Those results previously prompted KeyBanc to raise its price target to $200 from $175 while maintaining the same Overweight rating.
KeyBanc attributed part of the quarter’s EPS outperformance to a lower tax rate, which contributed roughly $0.07 per share. That tax benefit helped offset operational headwinds in the Industrial Powertrain Solutions and Automation & Motion Control segments.
Company profile
Regal Rexnord was created through the combination of Regal Beloit and Rexnord’s Process & Motion Control business. The combined company manufactures electric motors, electrical motion controls, power transmission components, and power generation equipment.
Analyst stance
KeyBanc’s maintained Overweight rating signals the bank’s expectation that Regal Rexnord will outperform the average total return of other stocks in the analyst’s coverage universe over the coming 12 months. The latest price-target increase to $255 represents an additional step up in valuation following the company’s stronger-than-forecast quarterly performance.
Context limitations
The note and the company’s reported quarterly figures are the bases for KeyBanc’s updated valuation. The analyst’s prior target adjustments and the specific items cited in the earnings beat - including the tax-rate benefit and segment-level operational challenges - are the only factors referenced in the valuation update.