Sep. 15 at 7:07 PM
JPMorgan began coverage of Timken with a Neutral rating and
$80 price target, citing reduced cyclicality from diversification but cautioning that execution under new leadership and short-cycle exposure remain risks. Timken has shifted away from auto bearings, with auto sales now under 10% of revenue versus ~15% a decade ago, while expanding into Industrial Motion and aftermarket services. This move has improved durability of sales and margins, supported by local manufacturing in Europe and Asia.
Lucian Boldea became CEO in August, addressing succession questions. JPMorgan said investors will now watch for results from the new team, noting its 2025–26 EPS forecasts are 2–4% below consensus. Analysts expect ~3% organic growth with margins in the high-teens to low-20s. Near-term risks include integration, cost pressures, and short-cycle demand swings, while strong execution in Motion and new products could provide upside.
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