Timken's (TKR) fundamental headwinds related to H2 growth moderation and incremental price and cost uncertainty are largely transitory, Oppenheimer said in a research report emailed Thursday.

The brokerage stated that China wind declines in Q3 and pre-divestiture belts weakness are masking stable-to-improving volume across most of the portfolio, while targeted pricing and cost mitigation support a good starting point for 2027 profitability.

Oppenheimer said it lowered its EPS estimate for 2026 and 2027 to $6.20 and $7.50, respectively, from $6.22 and $7.65 earlier, citing a dynamic operating environment.

Timken is well-positioned to accelerate growth throughout automation and industrial solutions, infrastructure buildout, transportation, as well as power & electrification, according to the note.

The brokerage said it reiterated its outperform rating on the stock with a price target of $150 per share.

Price: 116.57, Change: -0.18, Percent Change: -0.15