Analysts Are Betting On Titan Machinery Inc. (NASDAQ:TITN) With A Big Upgrade This Week
Titan Machinery Inc. (NASDAQ:TITN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Titan Machinery will make substantially more sales than they'd previously expected.
Following the upgrade, the most recent consensus for Titan Machinery from its three analysts is for revenues of US$1.6b in 2022 which, if met, would be a meaningful 10% increase on its sales over the past 12 months. Per-share earnings are expected to soar 60% to US$1.40. Previously, the analysts had been modelling revenues of US$1.4b and earnings per share (EPS) of US$1.34 in 2022. The most recent forecasts are noticeably more optimistic, with a decent improvement in revenue estimates and a lift to earnings per share as well.
See our latest analysis for Titan Machinery
With these upgrades, we're not surprised to see that the analysts have lifted their price target 19% to US$29.33 per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Titan Machinery, with the most bullish analyst valuing it at US$31.00 and the most bearish at US$23.00 per share. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Titan Machinery's growth to accelerate, with the forecast 10% annualised growth to the end of 2022 ranking favourably alongside historical growth of 1.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Titan Machinery to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Titan Machinery.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Titan Machinery analysts - going out to 2023, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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