Titan shares rise on "Buy" rating

(AP)  NEW YORK — Shares of Titan International Inc. rose Wednesday, after an analyst for Janney Capital Markets initiated coverage of the wheel and tire supplier with a "Buy" rating.

THE SPARK: Analyst Ryan Connors said business continues to boom for the Quincy, Ill.-based company, which makes heavy-duty tires for machinery used in agriculture, mining and other industries.

With sales expected to continue strong through 2012 and Titan shares still at a reasonable price, Connors said the "Buy" rating is warranted.

THE BACKGROUND: Connors said demand for Titan's products has been so high that the company's biggest problem last year was filling all its orders.

While demand from agricultural customers may not be as strong this year as it was in 2011, demand from mining and construction markets shows no sign of slowing, so Titan's sales volumes and pricing leverage should increase, Connors said.

THE ANALYSIS: "With Titan aggressively moving to meet the elevated demand levels, we believe the risk to 2012 guidance and consensus lies to the upside, setting the stage for strong earnings momentum in the quarters ahead," Connors told investors in a note. He set a $28 price target for Titan.

THE SHARES: In midday trading, Titan shares rose $1.03, or 4.5 percent, to $23.93, after peaking at $24.28 earlier in the day.

Over the past 52 weeks, the company's shares have traded between $12.97 and $31.42.