UPDATE: Bank of America Upgrades RBC Bearings on Upside From Capital Deployment
In a report published Wednesday, Bank of America analyst Kristine T. Liwag upgraded the rating on RBC Bearings (NASDAQ: ROLL) from Neutral to Buy, and raised the price target from $70.00 to $75.00.
In the report, Bank of America noted, “We are upgrading RBC Bearings (ticker: ROLL) to Buy from Neutral. RBC Bearings is half diversified industrials and half aerospace and defense. Weaker than expected sales from diversified industrials weighed down sentiments as organic growth was only up 1% Y/Y in 3QFY14. We are becoming more positive on the stock for three reasons: 1) the worst in industrials is behind the company, 2) the aerospace & defense half of the business remains strong, and 3) the company's balance sheet is overlooked and could provide significant upside. Overall, recent pullback of the stock provides an attractive entry point and we target nearly 22% in returns in the next twelve months.”
RBC Bearings closed on Tuesday at $61.63.
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