Shift From Cyclicality To Secular GrowthAccording to the Kerrisdale report, the multi-billion-dollar acquisitions of Rexnord’s Process & Motion Control business and Altra Industrial Motion transformed the $15 billion market capitalization company from a legacy heating, ventilation and air conditioning (HVAC)-heavy business into a high-margin motion control leader.Data Center Backlog Drives MomentumKerrisdale stated that the company’s entry into the data center power equipment modules (ePODs) market will drive a financial inflection. The report noted that Regal entered the ePOD market in early 2025 and exited fourth quarter with $735 million of orders.Physical AI And Robotics TailwindsThe report emphasized that Regal holds a broad portfolio of motors and linear motion products required for robotics and automation. These segments currently account for 21% of total revenue, positioning the company to benefit from the expansion of “physical AI” applications.Significant Valuation Discount CitedKerrisdale pointed out that Regal trades at 11.5 times 2027 estimate EBITDA, representing a steep discount to its industrial peers. Outlining an average upside target of 99% across multiple methodologies, the firm stated, “We see Regal shares motoring at least 100% higher.”Critical Levels To Watch for RRX StockRRX is extended above its key trend gauges, trading 5.2% above the 20-day SMA ($217.41), 8.2% above the 50-day SMA ($211.30), 10.7% above the 100-day SMA ($206.60), and 29.7% above the 200-day SMA ($176.22). The 20-day SMA above the 50-day SMA keeps the near-term trend pointed up, and the golden cross (50-day above 200-day) that formed in July 2025 continues to support a longer-term bullish structure.