RBC Bearings: Strong Demand and Strategic Growth Drive Overweight Rating and Increased Price Target

Kristine Liwag, an analyst from Morgan Stanley, maintained the Buy rating on RBC Bearings (RBC – Research Report). The associated price target was raised to $415.00.

Kristine Liwag’s rating is based on the robust demand for RBC Bearings’ products in both the Industrial and Aerospace & Defense sectors. The company has shown significant year-over-year growth, with the Industrial segment increasing by approximately 3.3% and Aerospace & Defense by 10.6%. The management anticipates this strong demand to persist into the next fiscal year, particularly in Aerospace, which is expected to grow by at least 15%. Additionally, RBC Bearings has demonstrated strong execution capabilities, as evidenced by an expansion in gross margins and a reduction in leverage following the acquisition of Dodge.
Furthermore, RBC Bearings is viewed as a high-quality industrials company with promising growth and margin expansion potential. The company’s improved financial leverage positions it well for future mergers and acquisitions, which could further enhance its growth. As a result, Kristine Liwag has reiterated the Overweight rating and increased the price target to $415, reflecting a positive outlook on the company’s future performance and valuation prospects.

According to TipRanks, Liwag is a 5-star analyst with an average return of 12.8% and a 63.60% success rate. Liwag covers the Industrials sector, focusing on stocks such as Boeing, Hexcel, and Aercap Holdings.