What Happened?

Shares of heavy equipment distributor Titan Machinery (NASDAQ:TITN) jumped 11.9% in the morning session after Baird upgraded the stock's rating from Neutral to Outperform and raised the price target from $14 to $25. The new price target implied a potential 40% upside from where shares traded before the upgrade was announced. The firm added, "TITN underperformed the S&P by ~70% in 2024 as the stock steadily moved lower following significant guidance cuts and equipment margin compression as inventories ballooned and used equipment prices declined. Inventories drive stock performance, with TITN set to destock as CY2025 progresses which should catalyze the shares."

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What The Market Is Telling Us

Titan Machinery’s shares are very volatile and have had 20 moves greater than 5% over the last year. But moves this big are rare even for Titan Machinery and indicate this news significantly impacted the market’s perception of the business.

Titan Machinery is up 25.6% since the beginning of the year, but at $17.40 per share, it is still trading 38.1% below its 52-week high of $28.09 from February 2024. Investors who bought $1,000 worth of Titan Machinery’s shares 5 years ago would now be looking at an investment worth $1,353.

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