DB Reiterates Hold Rating on Allegheny Technologies
Wednesday, June 15, 2021 1:00 PM

Analysts at Deutsche Bank retained Hold rating on the shares of Allegheny Technologies Inc. (NYSE: ATI) as they believe that high performance metals remains a shinning spot as result of key end-markets and capacity constraints. They set a price target of $65 for the stock.

DB analysts state that ATI appears comfortable that pressure of raw material inflation will be limited given its long term supply agreements this cycle. They state that titanium markets are firm and its long-term segment margin target remains 30 percent. They state that the firm’s contributions will be aided by product qualifications, market growth and added integration. They state that the company is expecting additional desal tenders later this year but customers will be sensitive to competing material pricing. They state that electrical steel volumes are expected to grow 10 percent this year. However, stainless steel is the obvious weak spot given unsuccessful attempts to raise base prices.

On a year-to-date basis, ATI’s share performance is 11.91 percent, and as compared to Standard & Poor’s 500, the company’s share performance is 10.73 percent.

Allegheny Technologies is a specialty metals company headquartered in Pittsburgh, Pennsylvania. It has a market capitalization of $6.55 billion, and P/E ratio of 49.010. It has 106 million outstanding shares.

Shares of ATI were down 1.41 percent or 87 cents to trade at $60.98 in the closing session.