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On Tuesday, Bernstein analysts, led by Chad Dillard, maintained their Market Perform rating on Titan America (NYSE:TTAM) with a steady price target of $15.00. The company’s first-quarter earnings per share (EPS) were reported at $0.19, slightly below the consensus estimate of $0.20, while revenue reached $79.8 million, exceeding analysts’ expectations by approximately 3% compared to the projected $77.6 million. According to InvestingPro data, TTAM currently trades at 11.57x earnings, with a market capitalization of $2.38 billion.
Titan America’s first quarter was notably affected by adverse weather conditions, particularly in Massachusetts, where a significant number of workdays were lost, during what is already considered a seasonally slow period. Furthermore, in Florida, weaker residential demand contributed to delays in the implementation of price increases. Despite these challenges, the company maintains strong fundamentals with an EBITDA of $335.11 million and annual revenue of $1.63 billion.
Despite these challenges, Titan America experienced better-than-anticipated results in its aggregates business, where the company has recently increased its capacity. Management at Titan America reaffirmed their guidance for the year, which anticipates improved end markets and the direct effects of tariffs.
However, Bernstein analysts expressed concerns regarding the company’s outlook, suggesting that the guidance might be overly optimistic. They indicated that the expectations set by the company could require a substantial acceleration in performance for the remainder of 2025 to be met.
In other recent news, Titan America reported fourth-quarter 2024 revenue of $390 million, surpassing the consensus estimate of $385 million, and adjusted EBITDA of $84 million, exceeding the forecast of $79 million. Despite these positive results, the company has faced challenges due to adverse weather conditions affecting cement volumes, particularly in Florida and Virginia. Looking ahead to 2025, Titan America anticipates mid-single-digit revenue growth and a modest expansion in EBITDA margin, with projections suggesting potential revenues of approximately $1.70 billion. Analysts from Stifel and Bernstein have adjusted their price targets for Titan America to $15, citing weather-related challenges and tariff implications on imported cement. Stifel has maintained a Buy rating, while Bernstein holds a Market Perform stance. BofA Securities also revised its target to $15.50, maintaining a Neutral rating. The company is expected to experience stronger performance in the latter half of 2025 as infrastructure projects and commercial construction drive demand.
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