BofA Securities downgrades Titan America stock to Underperform on housing concerns

Published 24/07/2025, 12:04
BofA Securities downgrades Titan America stock to Underperform on housing concerns

Investing.com - BofA Securities downgraded Titan America (NYSE:TTAM) from Neutral to Underperform on Thursday, setting a price target of $14.00. According to InvestingPro data, the company maintains strong fundamentals with a ’Great’ financial health score and trades at a P/E ratio of 14.4x, though current analysis suggests the stock is slightly overvalued.

The downgrade comes as Titan America’s stock has risen 21% since the beginning of July, significantly outpacing the S&P 500’s 4% gain during the same period.

BofA Securities cited concerning trends in housing data, which continues to decline, particularly in the South region where Titan America generates the majority of its revenue.

The firm highlighted Titan America’s 37% direct exposure to the residential market as a key vulnerability, making the company susceptible to shifts in residential trends.

With the stock now trading above BofA’s price target, the investment bank determined an Underperform rating was appropriate, replacing its previous Neutral stance.

In other recent news, Titan America reported its first-quarter earnings per share (EPS) at $0.19, which was slightly below the consensus estimate of $0.20. The company’s revenue, however, reached $79.8 million, surpassing analysts’ expectations by about 3% compared to the projected $77.6 million. The quarter was impacted by adverse weather conditions in Massachusetts, leading to a loss of workdays during an already slow season. Additionally, weaker residential demand in Florida resulted in delays in implementing price increases. Bernstein analysts, led by Chad Dillard, maintained their Market Perform rating on Titan America, with a steady price target of $15.00. These developments highlight the challenges Titan America faced in the first quarter.

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