Timken Lacks Near Term Catalysts as Spin Approaches, Downgraded by KeyBanc

On Tuesday, KeyBanc downgraded shares of Timken

from Buy to Hold and removed the $70 price target. Analyst Steve Barger sees “fair valuation and few catalysts as spin approaches.” The downgrade was based on a lack of any near term catalysts, “rather than any longer term structural or end market issues.” Barger's is uncertain how shares will trade following the upcoming Steel segment spin-off in “late 2Q or early Q3.” The analyst revised earnings per share estimates:

Shares of Timken are unchanged in pre-market trading. The stock has been a bright spot in a choppy market year to date, up 8.6 percent.