Titan International Inc (TWI)

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MARKET TALK: Jefferies Calls a Bottom on Titan International
Oct 15, 2012 11:19:25 (ET)


11:19 EDT - After falling more than 40% since early May, Jefferies upgrades Titan (TWI) to buy while reiterating its $23 price target. It says while the heavy-vehicle tire maker is facing tough market conditions in the farm and mining segments, "worries about the earnings trajectory are overdone for now." The investment bank thinks TWI should be able to shift product from machine makers to the aftermarket, and while mining markets "may be down next year, TWI continues to build its distribution and we believe that increasing penetration will help the business grow despite headwinds." Jefferies adds TWI's "improved relationship with Caterpillar (CAT) should also help offset end-market demand weakness." Shares climb 4.7% to $18.68. ([e-mail])

(END) Dow Jones Newswires

October 15, 2012 11:19 ET (15:19 GMT)