JPMorgan initiates Timken stock coverage with Neutral rating, $80 target

Investing.com - JPMorgan has initiated coverage on Timken (NYSE:TKR) with a Neutral rating and a price target of $80.00, representing approximately 1% potential upside. According to InvestingPro data, Timken shows strong financial health with a current ratio of 3.13, indicating robust liquidity. The company has maintained dividend payments for an impressive 55 consecutive years, with 11 straight years of dividend increases.

The firm views Timken as a high-quality engineering franchise that has significantly reduced its cyclicality by expanding beyond bearings into Industrial Motion and services.

JPMorgan notes that Timken’s strategy of "technical depth, disciplined M&A, and local-for-local manufacturing" remains intact, while leadership transition and short-cycle exposure keep the risk/reward balanced in the near term.

In August 2025, Lucian Boldea was appointed President and CEO of Timken, resolving succession uncertainty and reducing governance risk, though JPMorgan indicates investors will now look for proof of execution under the new leadership.

The firm’s estimates for Timken are 2-4% lower than consensus estimates for adjusted EPS in 2025-26E.

In other recent news, The Timken Company has announced several key leadership changes. Lucian Boldea will become the company’s president and CEO effective September 1, 2025, succeeding Richard G. Kyle, who has been serving as interim CEO since March. Boldea, who joins from Honeywell, brings over 25 years of industry experience. Additionally, Timken has appointed Michael A. Discenza as vice president and chief financial officer, effective immediately, following the planned departure of Philip D. Fracassa. Discenza has been with Timken for over 25 years, most recently serving as vice president – finance and group controller.

In other developments, Timken’s board of directors has declared a quarterly cash dividend of 35 cents per share, payable on August 29, 2025, to shareholders of record as of August 19, 2025. These announcements come amid Timken’s ongoing efforts to strengthen its leadership team. Boldea’s and Discenza’s appointments are part of a strategic transition aimed at positioning the company for future growth. The dividend declaration reflects Timken’s commitment to returning value to its shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.