UPDATE: Bank of America Downgrades RBC Bearings to Neutral, Reiterates $66 PT Approaching Fair Value

In a report published Tuesday, Bank of America analyst Kristine T. Liwag downgraded the rating on

from Buy to Neutral, but reiterated the $66.00 price target. In the report, Bank of America noted, “We are downgrading RBC Bearings

to Neutral from Buy. In our view the stock is approaching fair value and there is limited upside from current levels. RBC stock is up 26% YTD vs. the S&P 500 Index which has appreciated 18%. In our opinion, RBC's recent stock outperformance performance can be attributed to 1) a ramp-up in commercial aerospace, 2) improvement in ISM data PMI index since mid-2013 and 3) M&A activity in the bearings industry. However, defense is likely to be a near-term headwind for the company as the US government shutdown interrupts military maintenance and procurement.” RBC Bearings closed on Monday at $63.21.