BofA sees Timken ‘closing in on the bottom,’ upgrades to Neutral

As previously reported, BofA upgraded Timken (TKR) to Neutral from Underperform with a price target of $78, up from $73. Shares underperformed in 2024 and the firm views the worst of Timken’s underperformance as likely over as pressure on the growth profile is starting to ease, the analyst tells investors. Yesterday, peer SKF reported a pickup in U.S. industrial activity post-election and in January, the ISM Index jumped to 50.9, suggesting an expansion in manufacturing following a two-year contraction, the firm noted. While the current post-election bump may fade and BofA still expects organic growth to slightly decline in Q1, Timken is likely past the “eye of the storm,” the analyst added.