Titan Machinery Inc. Receives an Underperform from William Blair

By George MacDonald

William Blair analyst Lawrence De Maria maintained an Underperform rating on Titan Machinery Inc. (NASDAQ: TITN) yesterday and set a price target of $10. The company’s shares opened today at $11.75, close to its 52-week low of $10.69.

Maria commented, “We reduced our price target from $12 to $10, which is based on 5.5 times our forward EBITDA forecast. The major debt maturity, the $150 million convertible bond, is not due until 2019. Titan Machinery’s short interest is 31%, and thus, any positive news could causes squeezes in the stock, especially given the low liquidity in this $260 million market capitalization name. Our bias remains negative given our fundamental bearish view on agricultural markets. There could be further downside with losses next year and if the farm recession lasts several years. “

Titan Machinery Inc. has an analyst consensus of Hold.

Based on Titan Machinery Inc.`s latest earnings report from July 31, the company posted quarterly revenue of $451M and quarterly net profit of -$614,000. In comparison, last year the company earned revenue of $588M and had a net profit of $5.83M.

According to TipRanks.com, Maria is a 2-star analyst with an average return of 1.2% and a 40.0% success rate. Maria covers the Industrial Goods sector, focusing on stocks such as Titan International, Cummins Inc., and Caterpillar.

Titan Machinery, Inc. owns and operates a network of service agricultural and construction equipment stores in the United States and Europe. The Company has three business segments: Agriculture, Construction and International.