BofA analyst Michael Feniger has adjusted the price target for Timken (TKR, Financial) shares, lowering it from $85 to $68.50 while maintaining a Neutral rating. This decision reflects broader concerns in the Machinery, Engineering & Construction (E&C), and Waste sectors, where a difficult earnings landscape is anticipated.
Feniger suggests that companies in these sectors face a "lose-lose" situation as they approach earnings reports. On the one hand, there is pressure to revise guidance amidst uncertain market conditions, while on the other, attempts to avoid guidance cuts might give an impression of being disconnected from market realities.
Amidst these challenges, BofA is revising its price targets across the sector and shifting its focus towards services such as aggregates, rentals, and waste management, rather than on original equipment manufacturers. This strategy indicates a preference for more stable areas within the industry. Timken (TKR, Financial), as a player in these sectors, is directly affected by these broader industry trends and insights.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for The Timken Co (TKR, Financial) is $85.44 with a high estimate of $102.00 and a low estimate of $70.00. The average target implies an upside of 42.86% from the current price of $59.81. More detailed estimate data can be found on the The Timken Co (TKR) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, The Timken Co's (TKR, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for The Timken Co (TKR, Financial) in one year is $78.14, suggesting a upside of 30.65% from the current price of $59.81. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the The Timken Co (TKR) Summary page.
