Analyst Note
| Krzysztof Smalec, CFA |We are bumping our fair value estimate for narrow-moat rated Donaldson to $59 from $57 following the firm’s fiscal second-quarter earnings release. While nothing in Donaldson’s earnings results materially alters our long-term outlook for the firm, we’ve increased our fair value estimate due to an improved near-term outlook, time value of money, and reversing the implementation of a probability-weighted change in the U.S. statutory tax rate in our model.