Allegheny Technologies (ATI) PT Raised to $29 at Deutsche Bank Following 4Q
Deutsche Bank raised its price target on Allegheny Technologies (NYSE: ATI) to $29.00 (from $25.00) while maintaining a Hold rating following the company's 4Q earnings report. 4Q17 adjusted EPS of $0.27 was above the FactSet consensus of $0.14.
Management guides 100-300bps improvement YoY for FRP's margin in 2018 indicating 3.5-5.5% and operating profit of $55-85m, compared to $37m generated in 2017. After incorporating guidance Deutsche Bank decreased revenue forecasts 4% to $3.9bn in 2018, but increase operating margins by ~50bps to 8.5%, thus 2018E EBITDA increases 1% to $493m and is 5% above FactSet consensus of $468m.