Regal Rexnord's (RRX) Q2 results face a potential upside from demand pull-forward ahead of early July tariff hold expiration, Oppenheimer said in a Tuesday note.

Although the industrial powertrain segment topline remains flat due to short-cycle market exposures, sales synergies remain strong on a solid powertrain funnel, the brokerage noted.

The company's automation and motion control business also faces revenue upside on "modestly" improved Q1 conversion. IPS and AMC backlogs for H2 delivery pose low risks, according to Oppenheimer.

Meanwhile, the company's partnership for eVTOL with Honeywell (HON) also showcases strategic layering, accompanying more proximate powertrain cross-sell, the analysts wrote.

Oppenheimer reiterated its outperform rating on the stock, with a price target of $180 per share.

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