Timken (TKR) is "moving beyond peak end-market headwinds" and could see "notable recovery prospects," Oppenheimer said in a note to clients emailed Friday.

The company's stock lagged behind S&P mid-cap industrial performance in 2024 amid investor worries surrounding "near-term demand and earnings visibility," the note said. However, the brokerage thinks Timken is now set for short-cycle recovery after facing industry-wide headwinds.

Due to factors like "easy comps," a "short-cycle leverage" and "outgrowth momentum in newer-market exposures" the industrial motion products manufacturer will likely "inflect to [mid-single digit]-plus organic growth during the year," Oppenheimer said.

The investment firm reiterated Timken's outperform rating and $97 price target.

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