Donaldson Co Inc
DCI: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$41.00 | Dvdjqk | Rrcdfkmw |
Ongoing Supply Chain Constraints and Cost Inflation Pressure Donaldson’s Fiscal Q3 Margins
We are maintaining our $59 fair value estimate for narrow-moat-rated Donaldson following the firm’s fiscal third-quarter earnings release. We’ve made some puts and takes in our model, but time value of money offset our slightly more muted near-term operating margin assumptions due to the ongoing supply chain disruptions and cost inflation. We see the name as modestly undervalued at current levels, with shares trading in 4-star territory.