RBC Bearings Stock Gets Price Target Hike From Morgan Stanley: Retail Believes It Might Be Buying Opportunity

Shares of RBC Bearings Inc. (RBC) drew retail attention on Tuesday after Morgan Stanley raised its price target on the stock to $390 from $360 while keeping an ‘Overweight’ rating.

According to The Fly, the brokerage noted that management execution "remains strong" as gross margins expanded about 200 basis points year-over-year.

Morgan Stanley also highlighted that the organic growth pipeline remains strong for FY26. The brokerage views RBC Bearings as "a high-quality industrials compounder with attractive growth and margin expansion potential.”

Other analysts also raised their price targets for the stock. Truist analyst Michael Ciarmoli raised the firm's price target to $410 from $351 while keeping a ‘Buy’ rating after the firm’s fourth-quarter (Q4) earnings beat.

The brokerage noted that the company's industrial growth is re-accelerating with tariffs and energy trends potentially being additive, while its commercial aero growth has mid- to upper-teen growth potential in FY26 as production rates recover.

Recently, the company reported a 5.5% year-over-year (YoY) rise in its fiscal third quarter net sales to $394.4 million compared to a Wall Street estimate of $394 million, according to FinChat.

Adjusted earnings per share (EPS) came in at $2.34 versus an analyst estimate of $2.2. Net income attributable to common stockholders rose 39.6% YoY to $56.9 million on a GAAP basis.

CEO Michael Hartnett said sales trends on the A&D side were robust despite headwinds from a commercial aerospace original equipment manufacturer (OEM) strike as broader demand for production capacity remained strong and customers began to prepare for an expected volume recovery.

Meanwhile, KeyBanc too raised the firm's price target on the stock to $395 from $375 while keeping an ‘Overweight’ rating on the shares.

One Stocktwits user cited the Morgan Stanley price target hike to say it might be a buying opportunity.

Shares of RBC Bearings have gained nearly 22% year-to-date and have risen over 33% over the past year.

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