Now is the right time to 'buy' RBC Bearings, says Truist; raises PT
23/09/2021 18:35
** Shares of precision bearings maker ROLL.O up 11.7% at
$222.84
** Truist Securities raises PT to $250 from $225, implying
an upside of ~25.3% from stock's last close
** With stock down ~20% from its record high of $250.52 in
late July after a recent selloff due to equity offering, Truist
believes now is the time to buy ROLL's shares
** On Wednesday, ROLL secured ~$1 bln to fund its $2.9 bln
acquisition of ABB's ABBN.S power transmission unit, Dodge
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** Brokerage believes the stock is not accurately reflecting
the value of the Dodge acquisition, upgrades ROLL to "buy" from
"hold"
** Truist expects planned acquisition of Dodge should drive
compelling synergies, material earnings accretion and put the
company in position to extract more revenues from the global
industrial markets
** Adds, the equity offering can push ROLL's market cap to
over $6 bln, improve daily trading volume, and put the name on
the radar screens of more mid-cap investors
** Three of 4 brokerages rate the stock "buy" or higher, and
1 "hold"; their median PT is $272.50 - Refinitiv data
** As of last close, stock had risen ~11.5% YTD
(Reporting by Devik Jain in Bengaluru)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 6182 2062; ;))