Citi lowers price target for Titan Cement

Citi has reduced its price target for Titan Cement from 70 euros to 65 euros, while maintaining a 'Buy' recommendation. The adjustment comes as the bank anticipates a slower recovery in profit margins than previously expected.

Citi forecasts third-quarter revenues of 754 million euros, a 10.2% increase year-on-year, but expects EBITDA to decrease by 7.3% to 173 million euros. This decline is attributed to rising energy and raw material costs, alongside expenses related to recent acquisitions.

While the US housing market continues to weigh on cement sales volumes, Titan maintains positive momentum in Greece with stable prices. The group also sees steady volumes in Southeast Europe and strong volume growth in Egypt, which helps offset price pressures in the Eastern Mediterranean. Additionally, an acquisition in Turkey is expected to bolster the group's scale.