UPDATE: Stifel Downgrades Timken (TKR) to Hold

(Updated - December 8, 2016 10:53 AM EST)

Stifel downgraded Timken (NYSE: TKR) from Buy to Hold with a price target of $42.00 (from $37.00). The downgrade was tied to valuation.

Analyst Stanley S. Elliott said, "Post-election, valuation has surged on the potential for accelerating growth and favorable policy changes. Persistent end-market weakness has been an overhang through 2016, and we would expect that some of these headwinds will linger into 2017. After a 28% increase in the share price in a little over a month (compared to a 5% gain in the S&P500), we are incrementally more cautious on the move in the shares compared to near-term demand trends. We continue to appreciate the overall strategy and strong FCF generation, and believe that the 2.6% dividend yield will help support shares at these levels. We are increasing our price objective to $42, which is short of the 10% upside threshold for Buy ratings and move to a Hold rating as result, but we would potentially be open to revisiting our outlook in the future."

For an analyst ratings summary and ratings history on Timken click here. For more ratings news on Timken click here.

Shares of Timken closed at $39.95 yesterday.

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