Auriga Maintains a 'Buy' on Allegheny Technologies (ATI); Stainless Drives EPS Shortfall; Adjusting Forward Estimates & PT

Auriga maintains a 'Buy' on Allegheny Technologies (NYSE: ATI) price target raised from $65 to $70.

Auriga analyst says, "ATI reported adjusted 4Q11 EPS results of $0.31 versus our estimate of $0.56 and consensus of $0.54. This compared to $0.63 in the prior quarter and $0.15 in the year ago period. The largest variances relative to our estimates was the lower than anticipated Flat-Rolled Products (FRP) segment results and to a lesser extent the margins for the High Performance Metals segment. Importantly, management noted that order entry for the Flat-Rolled Products segment is progressing well and that price increases of 10% or more have been implemented. While we are revising down our 2012 EPS estimate, we believe broader fundamental trends, most notably in the longer-cycled end markets such as in commercial aerospace and energy markets will continue to improve, which should also further improve the company's product mix."

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 $50.03 yesterday.

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