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Basic Materials – Initiating on Titanium Industry: Investors, Prepare for Take-Off

— Thanh Ha Pham, Equity Research Analyst, Japan Basic Materials

Jefferies believes the cycle is turning for titanium, with multi-year inventory adjustments concluding and secular growth from the aerospace industry raising ASP. Operational leverage is huge and the potential upside could be +3-4x above current share prices. Jefferies initiates coverage with a Buy rating on Osaka Titanium (5726 JP, ¥3,400 PT), and Toho Titanium (5727 JP, ¥1,700 PT). FULL REPORT