Jefferies Raises PT On TKR To $60

Jefferies has raised its price target on Timken TKR from $54 to $60, based on a better than expected quarter. Says Jefferies, in its report, “Timken reported 1Q EPS of $1.14 vs our estimate of $0.85 and consensus of $0.84. 2011 guidance was increased by $0.50 to $3.80-4.10, which compares to current consensus of $3.65… Notably, revenues were better than expected (14% higher) as were operating margins (14.3% vs 12.4% est.). The only area of disappointment in the quarter remained the Aerospace business, where revenues were 7% below our estimate and operating margins were only 2.8%. Aerospace volumes and margins are expected to improve as the year progresses.” Jefferies maintains a Hold rating on the stock. TKR closed at $55.35 yesterday.