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Citi Downgrades Titanium Metals (TIE) to Hold

April 21, 2009 9:04 AM EDT
TIE Hot Sheet
Rating Summary:
    2 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Citi downgrades Titanium Metals (NYSE: TIE) from Buy to Hold. Price target lowered to $7.50 from $8.

Citi analyst says, "Based on further weakness in titanium prices, we are downgrading TIE to Hold and reducing our '09 estimate to $0.33 from $0.35, '10 estimate to $0.50 from $0.80 and maintaining '11 at $0.85. Based on these changes our target prices declines to $7.50/sh from $8.00/sh...Items to look for in the earnings release include: 1) High value product mix; 2) YoY volumes changes in mill products; 3) Offsetting margin effects of lower raw materials costs and lower fixed cost absorption on diminished sales volumes; 4) Capex outlook; and 5) Commentary about aerospace engine or airframe demand."

Titanium Metals Corporation (TIMET) is a producer of titanium melted and mill products. The Company has titanium production facilities in the United States and Europe.

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