Street Calls of the Week
Investing.com - Nomura/Instinet initiated coverage on Titan Company (NS:TTAN) with a Buy rating and a price target of INR4,275.00 on Friday.
The research firm’s decision comes after Titan’s stock has underperformed the Nifty index by approximately 25% over the past two years, despite delivering a strong sales compound annual growth rate (CAGR) of 22% during fiscal years 2023-2025.
Nomura identified several factors behind the stock’s sideways trading pattern, including concerns about lab-grown diamonds potentially challenging Titan’s studded jewelry business, increased competition from newly funded players, higher gold prices affecting customer traffic, and moderation in earnings growth.
The firm believes most realistic headwinds have already been factored into the stock price and certain other concerns may be overestimated, suggesting these challenges are largely in the past.
Nomura forecasts Titan Company will achieve 18% sales CAGR and 19% earnings before interest and taxes (EBIT) CAGR over fiscal years 2026-2028, with minimal impact expected on the company’s growth trajectory.
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