Sell Rating on Titan America SA Due to Underperformance and Uncertain Outlook

Analyst Sherif El-Sabbahy of Bank of America Securities maintained a Sell rating on Titan America SA, retaining the price target of $14.00.

Sherif El-Sabbahy has given his Sell rating due to a combination of factors impacting Titan America SA’s financial performance and outlook. The company’s second-quarter results fell short of expectations, with revenue and adjusted EBITDA both coming in below consensus estimates. This underperformance was attributed to adverse weather conditions, maintenance timing at a key plant, and weaker residential markets.
El-Sabbahy also expressed concerns about the slowing housing market, which poses a risk to Titan’s outlook for the second half of the year. Although the company reiterated its guidance, the lack of specific metrics around its order book adds uncertainty. Additionally, the valuation framework reflects higher uncertainty and potential delays in recovery for residential demand, leading to a maintained price objective of $14.00 USD.