Timken initiated with a Buy at DA Davidson

DA Davidson initiated coverage of Timken with a Buy rating and $92 price target. The analyst also added the shares to the firm’s “Best-of-Breed Bison list,” citing its “wide moat, consistent cash flow, high margins, and solid capital-allocation track record.” While Timken is facing tough organic comps at the current time, these appear to be priced in since last summer’s early warnings, the analyst tells investors in a research note. The firm says the company’s margin opportunities are “abound from here” as multiple acquisitions are absorbed.