Donaldson Co Inc

DCI: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$27.00	Yytnhbv	Vflhkxp

Ongoing Supply Chain Constraints and Cost Inflation Pressure Donaldson’s Fiscal Q3 Margins

Krzysztof Smalec

Jun 2, 2022

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.

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