UPDATE: Loop Capital Starts Timken (TKR) at Hold

Loop Capital analyst Chris Dankert initiates coverage on Timken (NYSE: TKR) with a Hold rating and a price target of $72.00.

The analyst comments "We are initiating coverage of TKR with a Hold rating, $72 PT (12.9x our CY22 EPS forecast or 8.2x CY22 EBITDA). Near term, TKR is facing headwinds from supply chain issues, labor availability, weak price/cost, and manufacturing/factory loading inefficiencies which resulted in the company pulling CY21 guidance and are likely to drive meaningful cuts to consensus estimates. However, we are highly constructive on the medium- to longer-term story as strong end demand is expected to continue into 2022, while price/cost should flip to a tailwind, and there is an increasing likelihood of upside from M&A. We could look to get more positive following a full reset to expectations with the CY3Q call and/or further retrenchment in the shares."

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 $65.53 yesterday.

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