Titan International Receives a Hold from Jefferies

By Carrie Williams

Jefferies analyst Stephen Volkmann reiterated a Hold rating on Titan International (NYSE: TWI) on November 4 and set a price target of $11.50. The company’s shares closed last Friday at $10.10, close to its 52-week high of $10.91.

Volkmann wrote:

“TWI reported 3Q adjusted earnings of ($0.18) which was below both Consensus estimates of ($0.13) and Jefferies estimates of ($0.10). Management believes end market conditions are near the bottom, and margins appear to have stabilized. Balance sheet and cash flow also appear to be stable, but recovery and growth look elusive until ag end market conditions improve. Where we stand. Despite the lack of end market recovery, TWI has appreciated ~+130% YTD relative to the S&P 500 as the company entered 2016 trading below tangible book value and the stock benefited from the market’s 1Q rally in a short-covering climate. TWI has made good progress on improving its gross margin but SG&A is still higher than hoped and drove the loss this quarter.”

According to TipRanks.com, Volkmann is a 5-star analyst with an average return of 9.0% and a 63.4% success rate. Volkmann covers the Industrial Goods sector, focusing on stocks such as United Technologies Corp., Illinois Tool Works, and Eaton Corporation.

Titan International has an analyst consensus of Hold, with a price target consensus of $11.50.

Based on Titan International’s latest earnings report from June 30, the company posted quarterly revenue of $330.2M and quarterly net profit of -$1.9M. In comparison, last year the company earned revenue of $308.8M and had a net profit of -$31.48M.

Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TWI in relation to earlier this year.

Titan International, Inc. engages in the manufacture of wheels, tires and undercarriage industrial group servicing customers across its target markets. It operates through three segments: Agricultural, Earthmoving/Construction, and Consumer. The Agricultural segment manufactures rims, wheels and tires for use in various agricultural and forestry equipment, including tractors, combines, skidders, plows, planters and irrigation equipment and is sold directly to original equipment manufacturers and to the aftermarket through independent distributors, equipment dealers and Titan’s own distribution centers. The Earthmoving/Construction segment produces rims, wheels and tires for various types of off the road earthmoving, mining, military and construction equipment, including skid steers, aerial lifts, cranes, graders and levelers, scrapers, self-propelled shovel loaders, articulated dump trucks, load transporters, haul trucks and backhoe loaders. The Consumer segment builds selected products for all-terrain vehicles, turf, golf and trailer applications. Its also provides wheels/tires and assembles brakes, actuators and components for the domestic boat, recreational, and utility trailer markets. The company was founded by John A. Stillwell in 1890 and is headquartered in Quincy, IL.