3 TIMKEN share price target reports by brokerages below. See what is analyst's view on TIMKEN share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
Amid a challenging environment, Timken has managed to report a reasonable operating performance in H1FY20. With reasonable exposure towards railways, exports and distribution business, the company is likely to manage a revenue CAGR of 8.3% in FY19-21E. This is against the backdrop wherein other companies in the bearing space are likely to see a muted performance. On the other hand, a reset of margins at a higher level (led by operational efficiencies) would also act as a hedge against negative operating leverage. We expect a PAT CAGR of 21.4% in FY19-21E, which is among one of the best in our midcap capital goods coverage. We maintain BUY with a revised target price of Rs| 1020/share.
To fully utilise ABC’s capacities, TIL is planning a capex of | 35-40 crore at its Bharuch facility (utilisation at ABC is at ~70%). This will help TIL produce‘Timken brand’ bearings for its exports market. Access to new markets/geographies along with operational synergies from the merged entity is likely to be key monitorable from hereon. Going ahead, we expect both its segments, domestic and exports to grow at a CAGR of 10.5% and 14.0%, in FY19-21E, respectively. We expect revenue, EBITDA and PAT to grow at 11.3%, 16.5% and 21.0%, respectively, in FY19-21E. We value the company at 29x FY21E EPS to arrive at target price of Rs 835. We maintain BUY recommendation on the company.
To fully utilise ABC capacities, TIL is planning a capex of | 35-40 at its Bharuch facility (current utilisation at ABC at ~70%). This will help TILproduce ‘Timken brand’ bearings for its exports market. Access to new markets/ geographies along with operational synergies from the merged entity is likely to be key monitorable from hereon. Going forward, we expect both its segments, domestic, exports to grow at a CAGR of 11%, 15.5%, in FY19-21E, respectively. We expect revenue, EBITDA, PAT to grow at 12.1%, 14.5%, 18.5%, respectively, in FY19-21E. We expect strong EBITDA growth as we estimated higher utilisation in FY20-21E. We value the company at 30x FY21E EPS to arrive at a target price of | 830. We maintain BUY recommendation on the stock.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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