Analyst Note
| Krzysztof Smalec, CFA |Narrow-moat-rated Donaldson posted solid fiscal first-quarter results, with strong revenue growth in both segments. Despite ongoing supply-chain constraints and cost inflation, management raised its full-year fiscal 2022 outlook and anticipates operating leverage due to sales growth to help offset gross margin pressure. We’ve raised our fair value estimate for Donaldson to $57 from $55, based on the firm’s solid results and our more optimistic near-term projections. We view shares as fairly valued at current levels.