February 25, 2026 10:00 PM GMT Rowdy Robot | North America Picks & Shovels Robot Plays: Bearings In our view, bearings offer diversified, architecture-agnostic exposure to the secular robotics theme, with content scaling alongside robot complexity with relatively limited substitution, in-sourcing, or obsolescence risk. We forecast a ~300x growth in the robot bearings market through 2050. | M Rowdy Robot North America Picks & Shovels Robot Plays: | Morgan Stanley & Co. LLC Equity Analyst Adam.Jonas@morgansta ...

CROWN HOLDINGS, INC. ELECTS MICHAEL DOSS TO ITS BOARD OF DIRECTORS [Accessibility Statement] Skip NavigationTAMPA, Fla., Feb. 26, 2026 /PRNewswire/ -- Crown Holdings, Inc. (NYSE: CCK) announced today that packaging industry executive Michael P. Doss has been elected to its Board of Directors, effective March 3, 2026. The Board now has ten members.Mr. Doss most recently served as President, Chief Executive Officer and Director of Graphic Packaging Corporation, a leading NYSE-listed global manufacturer of pac ...

Core Insights - The company reported improved margins with an adjusted gross margin of 37.6%, up 50 basis points year over year, driven by synergies, price realization, and volume leverage [1] - Fourth-quarter organic revenue rose 2.9% year over year, with significant growth in the Automation and Motion Control (AMC) segment, which grew over 15% organically [2] - The CEO highlighted solid adjusted EPS growth, strong orders, and a rising backlog, with fourth-quarter orders increasing 53.8% year over year and a book-to-bill ratio of 1.48 [4][5] Financial Performance - Adjusted EBITDA margin was 21.6%, roughly flat year over year, while adjusted EPS for the quarter was $2.51, reflecting a 7.3% increase [1] - For fiscal year 2025, orders grew 15.5% on a daily basis, with adjusted EPS rising to $9.65, up nearly 6% [14] - The company generated $141 million of free cash flow in the quarter and ended with net leverage of 3.1x [7] Segment Performance - The AMC segment saw organic sales grow 15.2% year over year, with adjusted EBITDA margin at 20.5%, down about one point from the prior year [17] - Industrial Powertrain Solutions (IPS) reported organic sales growth of 3.7% year over year, with adjusted EBITDA margin at 25.7% [17] - Power Efficiency Solutions (PES) experienced a decline in organic sales by 10.7% year over year, primarily due to weaker residential HVAC performance [17] Order Activity and Backlog - The company highlighted $735 million in fourth-quarter orders for its E-Pod data-center power solution, contributing to a backlog that is approximately 50% higher year over year [5][7] - Daily order growth surged 53.8% in Q4, with a current pipeline of about $600 million for the broader data center business [6][13] - Management expects E-Pod projects to carry adjusted EBITDA margins in the 20%+ range, with shipments anticipated to begin in early 2027 [10][12] Guidance and Future Outlook - For 2026, management guided to roughly 3% sales growth, an adjusted EBITDA margin of 22.5%, and adjusted EPS of $10.20–$11.00 [6][17] - The company plans to lower net leverage to approximately 2.7x by year-end 2026, with a focus on debt paydown as a primary capital allocation priority [20] - Management expects to realize $40 million of cost synergies in 2026, treating it as a contingency against potential P&L pressures [16] Strategic Focus - The company is addressing ongoing headwinds from rare earth magnet availability, particularly affecting parts of AMC, with mitigation plans in place [19] - Data centers remain a strategic focus, with management emphasizing the importance of this segment for future growth [13]

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Group 1 - Regal Rexnord Corporation (NYSE:RRX) is recognized as one of the top 10 Data Center Cooling Companies to invest in, with a Buy rating reaffirmed by Barclays analyst Julian Mitchell and a price target of $165, indicating a potential upside of 10.85% from current levels [1] - On November 21, Regal Rexnord Corporation signed a Third Amended and Restated Credit Agreement with a banking group led by JPMorgan Chase Bank, securing an unsecured delayed-draw term loan of $850 million maturing on February 21, 2029, and an unsecured revolving credit line of up to $1.5 billion maturing on November 21, 2030 [2] - The company has a strong current ratio of 2.05, indicating its ability to meet short-term obligations with liquid assets, and plans to use the new credit facilities for associated expenses, refinancing existing agreements, general corporate purposes, and financing capital expenditures and working capital [3] Group 2 - Regal Rexnord Corporation provides sustainable solutions through its offerings in motor, power transmission, and air handling solutions, operating in three segments: Power Efficiency Solutions, Industrial Powertrain Solutions, and Automation and Motion Control [4]

Core Viewpoint - The article summarizes the latest analyst ratings from Wall Street, highlighting significant upgrades, downgrades, and new coverage that could impact market sentiment and investment decisions [1][6]. Upgrades - Oppenheimer upgraded General Electric Energy (GEV) from "Hold" to "Outperform," setting a target price of $855, citing improved pricing and sales, along with enhanced factory utilization and operational efficiency [5]. - JPMorgan raised PepsiCo (PEP) from "Neutral" to "Overweight," increasing the target price from $151 to $164, due to the company's accelerated innovation and marketing spending [5]. - HSBC upgraded AbbVie (ABBV) from "Hold" to "Buy," with a target price increase from $225 to $265, noting the company's growth momentum and strong execution capabilities [5]. - Morgan Stanley raised Terex (TEX) from "Equal Weight" to "Overweight," with a target price increase from $47 to $60, as the company's performance has rebounded and its business mix has improved [5]. - Oppenheimer upgraded Dyne Therapeutics (DYN) from "Hold" to "Outperform," significantly raising the target price from $11 to $40, highlighting the stock's undervaluation compared to its competitor Avidity [5]. Downgrades - HSBC downgraded Biogen (BIIB) from "Hold" to "Reduce," with a slight target price decrease from $144 to $143, citing the poor performance of its multiple sclerosis business [5]. - Jefferies lowered Emerson Electric (EMR) from "Buy" to "Hold," maintaining a target price of $145, indicating limited short-term upside due to the company's recent performance outlook [5]. - JPMorgan downgraded Noble Energy (NE) from "Overweight" to "Neutral," raising the target price from $31 to $33, while expressing caution about upstream capital expenditures [5]. - Jefferies downgraded Rexnord (RRX) from "Buy" to "Hold," reducing the target price from $170 to $160, noting that the company's transformation plan is taking longer than expected [5]. - Jefferies lowered Vail Resorts (VLTO) from "Buy" to "Hold," with a target price decrease from $125 to $105, stating that the current stock price reflects the company's stable demand and strong returns [5]. New Coverage - Guggenheim initiated coverage on Amazon (AMZN) with a "Buy" rating and a target price of $300, suggesting that the retail sector is showing signs of improvement despite previous concerns [9]. - B. Riley initiated coverage on Roblox (RBLX) with a "Buy" rating and a target price of $125, highlighting the company's strong long-term fundamentals [13]. - Cowen initiated coverage on Sensata Technologies (IOT) with an "Outperform" rating and a target price of $55, believing the company's platform aligns well with the $45 trillion "physical operations" industry [13]. - B. Riley initiated coverage on Take-Two (TTWO) with a "Buy" rating and a target price of $300, driven by the anticipated release of Grand Theft Auto 6 in November 2026 [13]. - Canadian Imperial Bank of Commerce initiated coverage on Shark Ninja (SN) with a "Buy" rating and a target price of $135, viewing the company as a "category disruptor" [13].

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the US equity market, particularly the implications of AI and cyclical growth on investment strategies. The overarching theme is the increasing volatility within a bull market, driven by idiosyncratic factors affecting various market segments [4][23]. Core Insights - **US Equity Fundamentals**: The report maintains a constructive outlook on US equity fundamentals, highlighting AI tailwinds, productivity gains, and broader EPS growth as key drivers. However, high valuation and growth expectations pose challenges for earnings [4][5]. - **Valuation Concerns**: Both Growth and Value stocks are trading at top decile P/E ratios, indicating that while fundamentals are strong, the market is setting a high bar for earnings growth [4][5]. - **Cyclical Growth**: There is a focus on cyclical stocks, particularly those showing inflections in EPS growth. The report suggests that recent earnings seasons indicate a potential recovery from an EPS growth recession [43][44]. Investment Strategies - **Growth and Cyclical Beta**: The report advocates for a combination of Growth and Cyclical beta investments, suggesting that medium-term earnings trends are positive despite recent volatility [5][11]. - **Inflecting Growth Basket**: A specific focus is placed on a basket of stocks that are expected to show positive EPS growth after a period of decline, emphasizing the importance of long-term viability in business models [11][44]. - **Return on Growth Capex**: The report highlights the importance of measuring cash returns from growth investments, with a focus on companies expected to see significant margin expansion in the coming years [12][39]. AI and Technology Insights - **AI Growth Projections**: AI-related stocks are projected to grow significantly, with expectations of an 80% annual revenue compound growth rate through 2030. However, concerns about valuation bubbles in certain segments persist [24][25]. - **Valuation Monitoring**: The report indicates that while there are no significant red flags in AI valuations, a GARP (Growth at a Reasonable Price) approach is recommended for investors focusing on AI stocks [25][27]. Tactical Recommendations - **Beat-and-Raise+ Baskets**: The report introduces tactical baskets for stocks that beat Q3 earnings expectations and raised future estimates, suggesting that these stocks may provide relative momentum through year-end [60][61]. - **Positioning for Falling Rates**: The report discusses strategies for positioning in a falling rate environment, suggesting a barbell approach with a mix of Large Cap Growth and Small/Mid Cap stocks [70][71]. Changes in Thematic 30 List - **Additions and Removals**: The report details changes to the Thematic 30 list, with new additions including Eaton (ETN) and NextEra Energy (NEE) for AI-related themes, and Micron (MU) for Positive ROE trends. Several stocks were removed to realign the list with core stock picking themes [99][100][102]. Other Notable Points - **Policy Considerations**: The report touches on the potential impacts of tariffs and tax policies on EPS, indicating that a 100 basis point increase in effective tariff rates could reduce 2025 EPS by approximately 50-60 basis points [84]. - **International AI Opportunities**: The report notes that while US AI growth is significant, international markets present attractive opportunities due to less aggressive pricing of growth expectations [77][78]. This summary encapsulates the key insights and recommendations from the conference call, providing a comprehensive overview of the current state and outlook of the US equity market, particularly in relation to AI and cyclical growth.

Summary of SMid Cap Industrials Conference Call Industry Overview - **Industry Focus**: North America Small and Mid Cap Industrials, particularly in AI infrastructure and related sectors [1][3][4] - **Key Themes**: - Market penetration within untapped Total Addressable Market (TAM) - Broad infrastructure investments - Nuclear power growth and safety - Electrification and automation trends [4][9] Company Insights APi Group (APG) - **Rating**: Overweight - **Current Price**: $37.4 - **Price Target**: $42 (12.1% upside) - **Market Cap**: $15.563 billion - **P/E Ratio**: 30.4x - **Revenue Growth CAGR**: 8% [3][6] Mirion Technologies (MIR) - **Rating**: Overweight - **Current Price**: $24.0 - **Price Target**: $34 (41.5% upside) - **Market Cap**: $5.955 billion - **P/E Ratio**: 57.3x - **Revenue Growth CAGR**: 2% [3][10] Rollins Inc. (ROL) - **Rating**: Overweight - **Current Price**: $59.4 - **Price Target**: $70 (17.9% upside) - **Market Cap**: $28.763 billion - **P/E Ratio**: 59.2x - **Revenue Growth CAGR**: 25% [3][6] Valmont Industries (VMI) - **Rating**: Overweight - **Current Price**: $391.2 - **Price Target**: $480 (22.7% upside) - **Market Cap**: $7.706 billion - **P/E Ratio**: 22.5x - **Revenue Growth CAGR**: 13% [3][13] Gates Industrial Corp (GTES) - **Rating**: Overweight - **Current Price**: $21.5 - **Price Target**: $33 (53.2% upside) - **Market Cap**: $5.563 billion - **P/E Ratio**: 15.5x - **Revenue Growth CAGR**: 7% [3][6] Regal Rexnord (RRX) - **Rating**: Overweight - **Current Price**: $131.0 - **Price Target**: $190 (45.0% upside) - **Market Cap**: $8.696 billion - **P/E Ratio**: 14.4x - **Revenue Growth CAGR**: 5% [3][6] Key Industry Trends - **Data Center Demand**: Expected electricity consumption from data centers to reach ~1,100 TWh by 2028, with a power installed base growing to 242GW by 2028 [22][24] - **Capex Growth**: Anticipated ~55% increase in annual grid investments from 2024 to 2030, driven by rising power consumption and infrastructure needs [31][32] - **Nuclear Power**: Significant partnerships with hyperscalers for nuclear energy supply, indicating a shift towards sustainable energy sources [37][45] Competitive Landscape - **Mirion Technologies**: Leading in nuclear safety technologies with a strong market share in 17 of 19 markets served, focusing on radiation safety and medical applications [52][54] - **Valmont Industries**: Positioned as a global leader in irrigation equipment and infrastructure solutions, benefiting from utility and telecommunications demand [91][96] Financial Metrics - **Average P/E Ratio**: 26.4x across covered companies - **Average Revenue Growth CAGR**: 14% for the sector [3][6] Conclusion - The SMid Cap Industrials sector is poised for growth driven by infrastructure investments, data center demand, and nuclear energy partnerships. Companies like Mirion and Valmont are well-positioned to capitalize on these trends, with strong financial metrics and growth potential.

Core Insights - Regal Rexnord Corporation (NYSE:RRX) is identified as a strong investment opportunity, with Barclays analyst Julian Mitchell raising the price target to $165 from $161, maintaining an Overweight rating due to significant data center exposure [1][2]. Group 1: Company Performance - Regal Rexnord confirmed a 10% order growth at the Baird 55th Annual Global Industrial Conference, indicating robust demand [2]. - The company anticipates its data center business to double in the next two years, supported by a billion-dollar pipeline [2]. - Regal Rexnord has secured approximately $30 million in humanoid-related orders and is working on a $100 million bid pipeline, showcasing its strong position in the humanoid market [3]. Group 2: Strategic Focus Areas - The company is focusing on growth in data centers, the medical sector, and automation, which are driving overall growth [2]. - The aerospace segment is another strategic focus, with the aerospace business valued at roughly $350 million, including various products such as servo motors and actuators [3]. - Regal Rexnord manufactures engineered solutions for motion control across multiple industries, including industrial, commercial, aerospace, and energy [3].

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