Timken upgraded to Buy at Jefferies amid improving margins

Jefferies analyst Stephen Volkmann upgraded Timken (TKR) to Buy from Hold with a price target of $95, up from $80, as part of a broader research note previewing 2025 for the Machinery and Industrial sector. Approaching 2025, the landscape has changed as the markets have turned more bullish on industrial trends, and with valuations near the high end of historical highs, the firm is forced to be “increasingly selective”, the analyst tells investors in a research note. The company’s global end-markets appear to be slowing, but margin improvements within the portfolio should limit decrementals while its acquisitions should add opportunities for growth despite weaker end markets, Jefferies notes. The firm adds that Timken’s margins appear to have improved through the full industrial cycle, setting the company up for higher valuation multiples over the cycle.