UPDATE: Bank of America Upgrades Timken Company to Buy; Many Upside Catalysts
Bank of America upgraded Timken Company (NYSE: TKR) from Neutral to Buy and raised the price objective from $54.00 to $70.00.
Bank of America commented, "We like the stock as 1) a cyclical recovery story with bottomed out expectations, 2) a well-run, ROIC company that will be further incentivized to deliver value due to continued activist pressure, and 3) a beneficiary of fading pension risk with potential for a steady 8-10% FCF yield post 2014. Timken is trading at 6.7x 2013E EBITDA, a 24% discount to direct Swedish competitor SKF (covered by Ben Maslen). We see 30% potential upside to $70 per share, or 8.5x 2013E EV/EBITDA."
Timken Company closed at $54.17 on Friday.
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