UPDATE: Barrington Research Reiterates Outperform Rating, Raises PT on RBC Bearings Incorporated
In a report published Monday, Barrington Research reiterated its Outperform rating on RBC Bearings Incorporated (NASDAQ: ROLL), and raised its price target from $50.00 to $52.00.
Barrington noted, “We reiterate our OUTPERFORM rating. We are increasing our price target to $52 from $50 due to 2013 earnings visibility, Q1/13 gross margin performance above our forecast and strong aerospace trends. Our $52 price target equates to 2013 EV/EBITDA multiple of 10.0x. As described in the chart on the next page, ROLL's backlog has been stable at $216 million for the last three quarters. We believe that the trend continues to be slower industrial ordering offset by growing aerospace orders. During Q1/13, aerospace ordering was impacted by new contract negotiations, which should result in stronger Q2/13 backlog growth. We are somewhat cautious on the near-term sales forecast due to the headwinds discussed in this report. However, the aerospace sector production ramp and ROLL's expanding gross margin should result in a very solid 2013 EPS growth year.”
RBC Bearings Incorporated closed on Friday at $46.37.
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