RBC Bearings Gaining Momentum from Industrial and Aerospace/Defense Segments

Dow Jones
08/04

1318 ET - RBC Bearings, a precision bearings maker, is gaining momentum in its core industrial and aerospace and defense segments, according to Raymond James in a research note. Analysts Tim Thein and Jennifer Stahmer think RBC can drive mid-teens top-line growth in FY27 and FY28, "especially given lack of real participation in (crowded) data center-exposed segments," they say. The analysts also expect volume absorption and favorable pricing/mix to expand gross margins. Growth in aerospace and defense should be even higher as RBC benefits from ramp-ups in OEM commercial production and increases in global defense budgets, the analysts say, adding that former niche markets like space should provide upside. Raymond James upgrades RBC to outperform from market perform with a $645 price target. RBC is up 3% to $567.36. grace.yoon@wsj.com)

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