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RBC: Future Guidance And Buybacks Will Support Balanced Fair Value Outlook

RBC: Profit Margins Will Improve Amid Measured Outlook For Fiscal 2026

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RBC
AnalystConsensusTarget
Not Invested
Published 27 Aug 2024

Update shared on 17 Dec 2025

Fair value Increased 0.45%
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Analysts have modestly raised their price target on RBC Bearings, adding about 0.5 percent to their valuation as slightly higher long term revenue growth, improved profit margins, and a marginally lower discount rate support a new fair value estimate of approximately 482 dollars per share.

What's in the News

  • Issued new earnings guidance for the third quarter of fiscal 2026, targeting net sales of approximately 454 million dollars to 462 million dollars, a projected increase of 15.1 percent to 17.1 percent from 394.4 million dollars in the prior year period (company guidance).
  • Reported completion of a long running share repurchase program originally announced in May 2019, retiring 240,006 shares in total for 48.3 million dollars, equivalent to about 0.9 percent of shares outstanding (company filing).

Valuation Changes

  • The fair value estimate has risen slightly, moving from approximately 480 dollars per share to about 482 dollars per share.
  • The discount rate has fallen marginally, decreasing from roughly 8.49 percent to about 8.47 percent, which modestly boosts the present value of future cash flows.
  • The revenue growth outlook has increased slightly, edging up from around 10.97 percent to about 11.01 percent.
  • The net profit margin forecast has risen modestly, improving from roughly 20.12 percent to about 20.18 percent.
  • The future P/E multiple is essentially unchanged, ticking up only fractionally from about 41.37 times to roughly 41.38 times.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.