Wunderlich Reiterates Buy on The Timken Company

Wunderlich is out with its report today on The Timken Company TKR, reiterating Buy. In a note to clients, Wunderlich writes, "Street consensus for The Timken Company looks a little bit low for the year and there is room for us to move our estimates up. TKR steel mills are running flat out with customers for heat treated steel required to make minimum purchases of 40,000 lbs up from 20,000. It has also raised prices (again) for seamless mechanical tubing. Raw material surcharges remain in effect. These actions, which were taken early into 3Q11, will, we believe, more than offset potential sales declines in the aerospace and defense (A&D) segment of the business. We reiterate our Buy rating and $65 price target on TKR shares." At the time of posting, shares of TKR were trading pre-market at $47.14, down 0.49% from Tuesday's close.