We're Raising Our Fair Value Estimate for RBC Bearings; Shares Still Look Moderately Overvalued

We're raising our fair value estimate for RBC Bearings to $50 per share from $47, following the release of fiscal second-quarter results. Most of the gain in our fair value estimate can be attributed to the impact of the time value of money since our last update. Additionally, we have slightly raised our long-term forecast, as we now have more confidence that RBC will improve profitability in its Ball Bearings segment. We are keeping our narrow moat rating intact. We believe RBC's shares look moderately overvalued.