Timken downgraded to Neutral from Buy at BofA

BofA downgraded Timken (TKR) to Neutral from Buy with a price target of $100, up from $88. While the analyst does not see EPS risk, the firm argues that valuation at current levels is “more balanced” and that the price versus cost gap likely narrows in the second half and 2024. The firm had previously upgraded Timken due to a steep valuation discount to its large machinery customers, but this valuation discount has narrowed with the stock up 32% year-to-date, versus Caterpillar (CAT) being up 10% and Deere (DE) up 2%, the analyst added.