Timken (TKR) PT Raised to $117 at Goldman Sachs

Goldman Sachs analyst Joe Ritchie raised the price target on Timken (NYSE: TKR) to $117.00 (from $105.00) while maintaining a Neutral rating.

The analyst comments "Bottom line: Updating estimates post 1Q26 beat, FY26 guide raised. TKR reported total segment EBITDA of $250 mn vs. Visible Alpha Consensus Data of $234 mn, driven by stronger performance in Industrial Motion (+24% vs consensus), partly offset by Engineered Bearings (-1% vs consensus). Organic growth was +4.3%. On the conference call, management noted its expectation for 2Q26 adj EPS to be modestly lower vs 1Q26, due to incremental inflation as well as a ~1% revenue pull forward from 2Q to 1Q. From an end-market standpoint, TKR raised its outlook for Heavy Industries (flat to +/-LSD vs down MSD earlier) and Off-Highway (up MSD vs flat to +/-LSD earlier). With this print, TKR raised its FY26 adjusted EPS guidance to $5.75-$6.25, which is predicated on organic growth of +3% (prior +2%) at the mid-point. Note that the FY26 EPS guide also includes a $0.15 tailwind from tariffs (vs $0.10-$0.15 in the prior guide), partially offset by a $0.10 headwind from potential incremental cost inflation. All in, we raise our FY26/FY27/FY28 EPS estimates to $6.00/$6.60/$7.25 (from $5.85/$6.45/$7.10) to reflect the beat and the raised guidance. We remain Neutral rated as we see better risk/reward elsewhere in our coverage. Our revised price target of $117 (from $105) implies a ~5.5% 2028E FCF yield."

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