Craig-Hallum keeps Buy rating on Titan Machinery, moderates FY25 expectations

Craig-Hallum analyst Steve Dyer notes Titan Machinery (TITN) attended ICR’s annual conference on Tuesday, providing an update on the business and speaking with investors. Notably, management commented on FY25 and said it is expecting the industry to be in-line with Deere’s (DE) forward outlook of down 10%-15%. However, even as the industry fades into mid-cycle, the landscape is still good – just not great, as it has been the prior two years. The firm remains encouraged by the structural advantages the company has gained since the last downcycle, specifically operational efficiencies, scale, geographic diversification and a focus on P&S. As such, Craig-Hallum is moderating its expectations for FY25 to below consensus estimates. The firm is maintaining a Buy rating on the shares given modest valuation, with a price target of $35.