UPDATE: Citigroup Downgrades Titanium Metals to Neutral on Lower Prices

Citigroup reduced its rating on Titanium Materials TIE from Buy to Neutral and lowered its price target from $16 to $13. Citigroup noted, "We are downgrading our investment recommendation for TIE to Neutral from Buy due to our lower titanium price forecasts and the resulting impact on our EPS estimates for TIE, which derives a larger portion of sales from titanium mill products (80% of ‘12E revenues) than the rest of our coverage universe (less than 50% of ‘12E revenues). In addition, TIE's lack of downstream integration is a competitive disadvantage given aerospace OEMs' desire for supply chain simplification. Limited investor communication remains a risk." Titanium Metals closed at $12.43 on Thursday.