Titanium: Bubble? What inventory bubble?
The Northcoast Research team are raising their titanium industry demand assumptions to account for a stronger-than-expected commercial aerospace backdrop, rapid inventory depletion and the cell phone redesign contribution. Companies focused on upstream production appear to be well-positioned to realise double-digit unit volume growth over the next year three years. Titanium pricing may have cooled in recent months, but the weakness has been attributed to normal mid-cycle correction factors and will only be a temporary adjustment. This supports the relatively bullish outlooks provided by the likes of BUY-rated ATI Inc..
Edition: 173
- 10 November, 2023