UPDATE: Seaport Global Securities Downgrades RBC Bearings (ROLL) to Neutral

October 14, 2016 7:45 AM EDT
Get Alerts ROLL Hot Sheet
Price: $90.74 -2.7%

Rating Summary:
    3 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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(Updated - October 14, 2016 10:21 AM EDT)

Seaport Global Securities downgraded RBC Bearings (NASDAQ: ROLL) from Accumulate to Neutral with a price target of $73.00 (from $88.00). Analyst Walt Liptak said he sees weak industrial sector demand and airframe channel inventory volatility.

"We believe that the industrial sector weakened over the last three months as evidenced by the fluctuations in the recent Manufacturing ISM Report PMI data. As a result, we are expecting ROLL's industrial business to experience continued core sales declines in the short term. We are concerned that the aerospace supply chain may be under pressure in 2H:16 as OEs de-risk their production with inventory reductions. We are lowering our price target and EPS estimates. Our new $73 price target (from $88 previously) equates to a 2017 EV/EBITDA of 11.7x and P/E of 22.3x. We are lowering our 2017 and 2018 EPS estimate to $3.28 from $3.43, and $3.67 from $3.81, respectively, due to ROLL's weaker end market outlooks," said Liptak.

For an analyst ratings summary and ratings history on RBC Bearings click here. For more ratings news on RBC Bearings click here.

Shares of RBC Bearings closed at $73.32 yesterday.

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