Christopher Bayliss
Long/short equity, deep value, value, research analyst

Titan International: Recent Slide Presents Buying Opportunity

Introduction

Titan International (NYSE:TWI) is a leading company in the OTR wheel and tire market. Titan shares have plunged almost 40% from their 52-week high from two weak quarters, announcement of near-term weakness in the tire market, and investor fears about drops in commodity prices. However, only the fear about a potential drop in commodity prices is warranted. The company has already shown noticeable improvement and the near-term worries, while they may affect the next quarter or two, mask Titan's long-term opportunities and intrinsic strengths. Barring a significant long-term contraction in commodity prices combined with a change in Titan's ability to control costs, Titan could be conservatively undervalued by over 30%.

Company Description

Titan operates in the off-the-road...

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