- Evercore ISI analyst David Raso upgraded Timken Co (NYSE:TKR) to Outperform from In-Line and raised the price target to $78 (an upside of 12.9%), from $76.
- Raso downgraded Oshkosh Corp (NYSE: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.
