KeyBanc Upgrades ROLL To Buy

KeyBanc has upgraded its rating on RBC Bearings

from Hold to Buy and is also establishing a $40 price target on the stock. Says KeyBanc, in the report, “As we look across our universe, ROLL stands out as a high-quality, net-debt negative company with what we think will be a more defensive revenue profile. Specifically, we think that should the ISM slip below 50, or should Industrial Production (

) comps turn negative, ROLL's ~50% exposure to aerospace end markets should help cushion its top line relative to other industrial consumable names like Kennametal Inc. (KMT-NYSE) and Lincoln Electric Holdings (LECO-NASDAQ). With respect to ROLL's industrial end markets, we believe its exposure to the distribution channel and to OEMs serving stronger end markets, including mining equipment and energy, could also provide some offset.” ROLL closed yesterday at $29.39.