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On Friday, DA Davidson analyst Michael Shlisky increased the price target for Titan International (NYSE:TWI) shares to $12.00, up from the previous $11.00, while reaffirming a Buy rating on the stock. The adjustment comes in the wake of Titan International’s fourth-quarter earnings for 2024. The stock, currently trading at $7.92, has experienced a 9.9% decline over the past week, according to InvestingPro data, yet led to raised estimates and a higher price target by the analyst.
Shlisky expressed optimism about the agricultural sector, specifically noting improvements in conditions, including in Brazil, where changes could begin to manifest as soon as this quarter. He anticipates a potential global upturn in late 2025 to early 2026, influenced by macroeconomic factors and farm income, as well as Titan International’s insights from discussions with Original Equipment Manufacturers (OEMs). InvestingPro data shows the company maintains strong liquidity with a current ratio of 2.35, positioning it well for potential market improvements.
The analyst highlighted that Titan International’s stock is currently trading at a discount compared to its peers, and with core end-markets at a low point, Shlisky suggests that it may be an opportune moment for investors to reconsider the company’s value proposition. The positive outlook is based on the expectation that the agricultural conditions will continue to improve, which could benefit Titan International’s business and, consequently, its stock performance.
Titan International’s recent earnings report and the subsequent price target increase reflect the company’s position in the market and the analyst’s confidence in its growth potential. The maintained Buy rating indicates a continued endorsement of the stock as a worthwhile investment.
In other recent news, Titan International Inc. reported its fourth-quarter 2024 earnings, exceeding analyst expectations with an earnings per share (EPS) of $0.09, against a projected loss of $0.11. However, the company faced challenges as its revenue fell short of forecasts, totaling $384 million compared to the anticipated $398.26 million. Despite the revenue miss, Titan emphasized its focus on expanding its aftermarket business, which now accounts for 45% of total sales. The company remains optimistic about a recovery in the agricultural market, which could drive future demand. Analysts from firms like Zacks Small Capital Research have noted these developments, though no specific upgrades or downgrades were reported. Titan’s leadership, including CEO Paul Reitz, expressed confidence in their strategic direction, highlighting ongoing efforts in innovation and operational efficiency. The company is preparing for a potential demand recovery in 2025, with projected first-quarter 2025 revenue between $450 million and $500 million. Titan’s financial condition remains solid, with plans to focus on debt reduction and strategic investments moving forward.
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