Morgan Stanley analyst Kristine Liwag has maintained their bullish stance on RBC stock, giving a Buy rating yesterday.
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Kristine Liwag has given her Buy rating due to a combination of factors. One of the main reasons is the robust performance in the industrial segment, where gross margins have significantly expanded. This growth within the industrial business was largely driven by strong distribution and aftermarket channels. Additionally, the Aerospace and Defense segment continues to perform admirably with substantial year-over-year growth, particularly in Commercial Aerospace.
Another factor contributing to the Buy rating is RBC Bearings’ improved financial leverage following their acquisition of Dodge. The company’s net debt to EBITDA ratio has decreased, indicating a healthier financial position and the potential for future mergers and acquisitions. Furthermore, the strong organic growth forecast for the upcoming fiscal year supports the company’s ability to be selective in pursuing further growth opportunities. Overall, RBC Bearings is viewed as a high-quality company with strong growth and margin expansion prospects.
Liwag covers the Industrials sector, focusing on stocks such as Boeing, FTAI Aviation, and General Dynamics. According to TipRanks, Liwag has an average return of 11.1% and a 58.80% success rate on recommended stocks.
In another report released yesterday, Truist Financial also reiterated a Buy rating on the stock with a $410.00 price target.