Sterne Agee Raises PT on RBC Bearings to $39 (ROLL)

Sterne Agee is out with its report today on RBC Bearings ROLL, raising its price target to $39. In a note to clients, Sterne Agee writes, "ROLL reported 3QFY11 adjusted EPS from continuing ops of $0.37 vs. SA estimate of $0.42 and consensus of $0.41 on a 20.4% y/y increase in revenue to $81.3M. FY11 is adjusted to $1.65 (from $1.72) on the weaker 3QFY10 performance and FY12 remains unchanged. Our price target is increased to $39 (19X 2012E EPS of $2.05) on our belief that growth in A&D markets should benefit investor perception in the medium term." Sterne Agee maintains Neutral on ROLL. At the time of posting, shares of ROLL were trading at $36.20, down 1.07% from Thursday's close.