Across the recent three months, 9 analysts have shared their insights on Timken (NYSE:TKR), expressing a variety of opinions spanning from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 3 | 5 | 0 | 0 |
| Last 30D | 0 | 0 | 0 | 0 | 0 |
| 1M Ago | 1 | 1 | 3 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 2 | 2 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $80.78, a high estimate of $102.00, and a low estimate of $65.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 7.27%.
Decoding Analyst Ratings: A Detailed Look
A comprehensive examination of how financial experts perceive Timken is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Chris Dankert |Loop Capital |Lowers |Hold | $65.00|$85.00 | |Angel Castillo |Morgan Stanley |Lowers |Overweight | $88.00|$94.00 | |Kyle Menges |Citigroup |Lowers |Buy | $70.00|$95.00 | |Joe Ritchie |Goldman Sachs |Lowers |Neutral | $75.00|$85.00 | |Stephen Volkmann |Jefferies |Lowers |Hold | $70.00|$90.00 | |David Raso |Evercore ISI Group |Raises |Outperform | $102.00|$91.00 | |Angel Castillo |Morgan Stanley |Raises |Overweight | $94.00|$93.00 | |Michael Feniger |B of A Securities |Raises |Neutral | $85.00|$78.00 | |Michael Feniger |B of A Securities |Raises |Neutral | $78.00|$73.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Timken. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Timken compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for Timken's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
For valuable insights into Timken's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on Timken analyst ratings.
Discovering Timken: A Closer Look
The Timken Co designs and manages a portfolio of engineered bearings and industrial motion products, and provides related services. The Company sells products and services to customers in the following market sectors: industrial distribution, renewable energy, automation, automotive original equipment (OE), agriculture/turf, rail, aerospace, auto/truck aftermarket, construction, etc. The company has two reportable segment: The Engineered Bearings portfolio features bearings with precision tolerances, proprietary internal geometries and quality materials. The Industrial Motion portfolio features products such as drives, breathers, seals, automatic lubrication systems, linear motion products, chain, belts, couplings, etc. Key revenue is generated from Engineered Bearings.
A Deep Dive into Timken's Financials
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Revenue Challenges: Timken's revenue growth over 3M faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -1.61%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 6.63%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Timken's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.47%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Timken's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.08%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: Timken's debt-to-equity ratio stands notably higher than the industry average, reaching 0.77. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
The Basics of Analyst Ratings
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.