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On Friday, Stifel analysts adjusted their outlook on Titan America (NYSE:TTAM), reducing the price target to $16.00 from the previous $19.00 while continuing to endorse the stock with a Buy rating. Currently trading at $13.31, near its 52-week low of $12.61, InvestingPro analysis suggests the stock is undervalued. The revision follows the company’s fourth-quarter results for 2024, which slightly exceeded market expectations in terms of revenue and adjusted EBITDA, despite challenges posed by adverse weather conditions.
Titan America reported a fourth-quarter revenue of $390 million, surpassing the consensus estimate of $385 million. The company’s adjusted EBITDA for the same quarter was $84 million, also ahead of the consensus forecast of $79 million. With trailing twelve-month revenue of $1.64 billion and a healthy gross profit margin of 26.09%, the performance was notably resilient in the face of weather-related headwinds that affected operations.Unlock deeper insights into Titan America’s performance with InvestingPro, which offers exclusive access to detailed financial analysis and over 10 additional ProTips.
Looking forward to 2025, Titan America anticipates mid-single-digit (MSD) top-line growth and a modest expansion in EBITDA margin. Based on an estimated 5% revenue growth and a 50 basis point margin improvement, projections suggest potential revenues of approximately $1.70 billion and adjusted EBITDA around $395 million for the year, building upon its current market capitalization of $4.39 billion.
For the first quarter of 2025, the company expects that ongoing weather challenges, such as rainfall in Florida and cold temperatures in Virginia, will continue to affect results. Consequently, the financial performance is anticipated to be more heavily weighted towards the second half of the year.
In the context of the broader market, Titan America does not foresee a direct impact from tariffs and has prepared multiple sources for cement supply both inside and outside the European Union to mitigate potential disruptions. Analysts at Stifel noted that while the specifics around tariffs are still uncertain, they could potentially serve as a tailwind for cement pricing and, by extension, profitability, depending on the implementation, duration, and subsequent demand effects of such tariffs.
In other recent news, Titan America reported its fourth-quarter earnings, revealing revenues of $390 million and earnings per share (EPS) of $0.21. The company’s revenue exceeded expectations, coming in slightly above the forecasted $387.16 million, although EPS fell just short of the $0.22 forecast. Despite the earnings miss, the revenue beat was seen as a positive sign by investors. Analysts at Bernstein and BofA Securities adjusted their price targets for Titan America, both reducing them to $15 and $15.50, respectively, while maintaining neutral ratings. The adjustments followed the company’s mixed performance, attributed to adverse weather conditions impacting cement volumes. Titan America also updated its 2025 guidance, now expecting mid-single-digit revenue growth, a shift from earlier forecasts of 10% growth. Looking ahead, the company anticipates a strong backlog of infrastructure projects to drive demand, particularly in the latter half of 2025. The firm remains cautiously optimistic about the impact of public infrastructure funding on its growth and margins.
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