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Investing.com - KeyBanc has reiterated its Overweight rating and $450.00 price target on RBC Bearings (NYSE:RBC) following the company’s first-quarter fiscal 2026 earnings results. The stock, currently trading at $411.99, has shown remarkable momentum with a 33.65% gain year-to-date, though InvestingPro analysis suggests the stock is trading above its Fair Value.
The firm cited RBC’s record backlog of $1.02 billion, which the company indicated has the potential to double over the next 12 months. During the first quarter, RBC’s Industrial business grew 6%, outperforming peers by 560 basis points, which KeyBanc attributes primarily to the company’s MRO/Aftermarket-focused business. With a strong current ratio of 3.33 and an overall GOOD financial health score according to InvestingPro, RBC maintains solid operational fundamentals.
In the Aerospace & Defense segment, RBC reported strong growth with its aircraft aftermarket business increasing 22.6% and solid contribution from Defense. Commercial aerospace build rates continue to progress positively according to original equipment manufacturers’ plans.
KeyBanc noted that RBC’s recent acquisition of VACCO shifts its end market mix to approximately 60% Industrial and 40% Aerospace & Defense for fiscal year 2026. The acquisition is expected to provide a long tail of sales and cost synergies, contributing to continued margin growth.
The $450 price target represents approximately 35.1 times KeyBanc’s fiscal year 2027 earnings estimate for RBC Bearings.
In other recent news, RBC Bearings Incorporated reported its Q1 2025 earnings, exceeding analyst expectations. The company achieved an adjusted diluted earnings per share (EPS) of $2.84, surpassing the forecasted $2.74. Additionally, RBC Bearings’ revenue reached $436 million, slightly above the anticipated $431.64 million. These results reflect positively on the company’s financial performance. The announcement of these earnings results was followed by a rise in the company’s stock price in pre-market trading. Investors often view such earnings beats as a sign of strong company performance. RBC Bearings’ ability to surpass both EPS and revenue projections highlights its operational efficiency. These recent developments are likely to be of interest to investors and analysts monitoring the company’s financial health.
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