Benchmark Reiterates Buy Rating on Allegheny Technologies (ATI)

Benchmark analyst Josh Sullivan reiterated a Buy rating and $81.00 price target on Allegheny Technologies (NYSE: ATI).

The analyst commented, "ATI’s February FY25 guidance set a conservative tone, although throughout the 1Q25 conference season, the company projected solid trends. Additionally, ATI made progress in its union relations, with a vote on a second new master contract expected on April 22nd. Aerospace and defense, along with premium end markets, remained robust during the quarter, with CFO Newman noting, “If you can produce it and you can ship it, you can sell it.” This strength is underpinned by long-term jet engine demand, as both GE and RTX continue working to meet OEM production ramp-ups. ATI’s updated FY25 EBITDA guidance, issued in February, was narrowed to a range of $800M to $840M from the prior $800Mto $900M, which included the assumption that the new U.S. administration will not materially alter the current business environment. While tariffs represent a new variable in the market, ATI’s aerospace and defense applications benefit from long-cycle support in the near term; however, the more industrially sensitive segments of ATI’s portfolio could face exposure. As a result, while we are positioned at the midpoint of ATI’s Q1 guidance range, we remain at the lower end of the full-year guidance range. Our 1Q25 adjusted EPS target of $0.58 compares to the Street’s estimate of $0.60 and the company’s guidance range of $0.55 to $0.61."

For an analyst ratings summary and ratings history on Allegheny Technologies click here. For more ratings news on Allegheny Technologies click here.

Shares of Allegheny Technologies closed at $45.50 yesterday.

You May Also Be Interested In