Evercore ISI Upgrades Timken & Downgrades Oshkosh - Read Why

  • Evercore ISI analyst David Raso upgraded Timken Co TKR to Outperform from In-Line and raised the price target to $78 (an upside of 12.9%), from $76.
  • Raso downgraded Oshkosh Corp OSK from Outperform to In-Line and set a price target of $124 (an upside of 7.4%).
  • With Q4 earnings season "largely complete" for the Industrial Machinery names he covers, Raso notes that most companies posted EPS beats on revenues overpowering weak margins.
  • The analyst is swapping small-to-mid cap exposure from Oshkosh to Timken on relative valuation after earnings as he downgrades the former to In-Line and upgrades the latter.
  • Raso mentions that the target multiples across the group have been lowered to reflect higher interest rates and slightly lowered 2022 EPS estimates.
  • Price Action: TKR shares are trading higher by 4.74% at $69.11 and OSK up by 1.56% at $115.49 on the last check Tuesday.
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