Titan Machinery upgraded to Outperform from Neutral at Baird

Baird analyst Mircea Dobre upgraded Titan Machinery (TITN) to Outperform from Neutral with a price target of $25, up from $14. The stock steadily moved lower in 2024 following significant guidance cuts and equipment margin compression as inventories ballooned and used equipment prices declined, the analyst tells investors in a research note. However, the firm says inventories drive stock performance, and Titan is set to destock as 2025 progresses, “which should catalyze the shares.” The stock is pricing in losses and write-downs in excess of $200M, an outcome which is very unlikely, contends Baird. As Titan’s inventories decline, it expects the stock to rebound to over $25.