'Cheap' Titan Cement set to benefit from US demand - Citi

Titan SA

10/07/2023 11:15

** Citi resumes Titan Cement  TITC.BR  at "buy", saying the
Greek cement maker's shares are "cheap" and don't price in its
exposure to growing U.S. cement demand, supported by the
Infrastructure Investment and Jobs Act
    ** The brokerage expects Titan's EBITDA to grow at CAGR of
around 15% in 2022-2025, outperforming European peers
    ** "We think Titan offers a cheap option ... to gain
exposure to the US market," Citi says, adding the market hasn't
priced the group's foothold in the residential buildings market
in U.S. South-East
    ** Florida, Virginia, and North Carolina - Titan's key U.S.
markets - are expected to grow faster than broader markets, the
broker says, as population growth and economic growth underpin
demand
    ** "With c60% of EBITDA coming from US markets, Titan is
effectively a play on the southeast US 'sunbelt' market" - Citi 
    ** In Greece, where Titan is the largest cement producer
with roughly 55% market share, Citi sees inflection point in
demand, boosted by governmental spending and growing residential
demand
    ** Of seven analysts covering Titan Cement, five rate it
"strong buy"/"buy", ​one "hold" and one "sell"
    ** The shares are up about 2% in Brussels midday trade​

 (Reporting by Olivier Sorgho)
 ((Olivier.Sorgho@thomsonreuters.com))