Titan Firing on all cylinders – upping Target Price

After having achieved solid earnings growth in the past four years, TITAN recently announced new, ambitious mid-term targets which call for a € 1bn EBITDA by 2029, which represents 62% growth from the current EBITDA. TITAN is seeking growth in both its core heavy materials businesses as well as through growing its alternative cementitious materials platform and enlarging the product portfolio (eg in precast solutions). The rock solid balance sheet with a net debt/EBITDA of only 0.5x gives TITAN ample firepower for both organic growth initiatives and M&A and we see significant synergies potential in the regions where TITAN has an established footprint. We continue to remain optimistic on TITAN's prospects in most geographies, not at least in the US, which is TITAN's largest market. The US remains a net-import market in which c. 24% of consumption is imported, implying that, over the short to medium-term, local production alone will not allow to suffice demand. In light of the attractive valuation, both vs peers as well as demonstrated by our DCF, we reiterate our Accumulate rating whilst upping our target price from € 45 to € 55.