Shares of Titan International (NYSE:TWI) surged Wednesday as Morgan Joseph upgraded them from "Hold" to "Buy," citing the progress of the company isn't priced into the shares.
"While currently trading at about 19x our estimate for 2011 EPS, Titan's shares do not appear to reflect certain qualitative positives. We believe the company could produce profits of $1.20 per share in 2012, in light of the initiatives underway (e.g., expansion into Brazil and Europe, growth of the mining-truck tire business and turnaround of construction equipment)," Morgan said.
"We are adjusting our Q3 and Q4 estimates from $0.19 and $(0.04) to $0.09 and $0.06, respectively, to better reflect our latest views on the timing for revenues and expenses. As a result, our 2010 EPS estimate moves up to $0.33 from $0.30. For 2011, we project EPS more than doubling to $0.75."
Titan closed at $15.07, soaring $0.84, or 5.90 percent. Morgan Joseph has a price target of $18 on the company.
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