KeyBanc Upgrades Allegheny Technologies (ATI) to Overweight

KeyBanc analyst Philip Gibbs upgraded Allegheny Technologies (NYSE: ATI) from Sector Weight to Overweight with a price target of $55.00.

The analyst comments: "While we are not raising/changing our FY25E, we believe ATI’s guidance framework will contain enough puts and takes to sponsor maintaining its existing range of $2.80-$3.00. Puts includes potential tariff impacts, which likely will not be felt (if felt at all) until later in the year and slower airframe titanium sales (we are already modeling down 4% y/y in 2025). Takes include stronger, more reliable operational performance following 2H24 issues, notably within its operations serving jet engine billet and forgings and a very modest engine after-market growth expectation of +6% y/y whereas some are potentially seeing as much as 15-35% y/y growth. We do not expect noise around recent USW contract negotiations to be a material factor for 2025 given there were no formal work stoppages. Shares are also trading at ~9.5x EV/EBITDA on our 2025E vs. our expected range of 10-12x and its nearest peers in CRS and HXL trading at ~13x EV/EBITDA. Note micro-cap peers in HAYN and USAP were recently acquired."

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 $45.61 yesterday.

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