Oppenheimer boosts Timken shares target to $100, cites growth potential
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On Thursday, Oppenheimer maintained an Outperform rating on Timken Company (NYSE:TKR) and increased its shares price target to $100 from the previous $95. The firm anticipates that Timken will surpass the growth expectations set for 2024, particularly in the second half of the year, and considers the stock to be undervalued.
According to the analyst, despite the high expectations placed on many industrial companies, Timken is positioned to exceed its growth projections for 2024. The analyst noted that challenges in industrial distribution and China, including those related to renewable energy, are already factored into investor expectations. Furthermore, comparisons are expected to become more favorable as the year progresses into the second half.
The report highlighted that Timken could greatly benefit from a short-cycle recovery over the upcoming quarters. This potential, combined with the company’s current discounted multiples—approximately five points below its direct competitors and ten points under the Industrial Machinery and Components (IMFC) average—supports the positive outlook.
The firm’s revised price target of $100 reflects confidence in Timken’s earnings momentum heading into 2025. The analyst believes that the company’s valuation is attractive and that Timken is in a strong position to meet or exceed growth targets, which justifies the improved price target and the continuation of the Outperform rating.
