Analyst Note| Joshua Aguilar |
Nothing in narrow-moat-rated JBT’s latest results materially alters our long-term view of the firm. While management revised its earnings guide, we were already modeling above guidance, so this was a negligible step-up in value. Therefore, we maintain our fair value of $112 per share. Time value of money was a valuation tailwind, although Morningstar’s probability adjusted-view of U.S. corporate tax rates in 2022 was about a $1 headwind to our valuation. Coupled with additional capital expenditure requirements given management’s commentary, and any tailwinds were more than offset by these variables (meaning that but-for their impact, we would have raised our valuation by $2 per share).