In a report published Monday, Stifel analyst Stephen Levenson reiterated a Buy rating on Allegheny Technologies (NYSE: ATI), and raised the price target from $45.00 to $50.00.
In the report, Stifel noted, “The recent acquisition news on forging peer Firth Rixson suggests that Allegheny's similar operations are worth more than the market is giving credit for and the outlook for stainless products is evident in additional base price increase announcements. Combining that with what we think is an aerospace market, particularly advanced jet engine work, that is heating up (no pun intended) gives us a reason to increase the target price ~10% to $50 even though we are reducing 3Q and 4Q forecasts for what we think is a likely LIFO reserve charge due to the rising prices of nickel and titanium.”
Allegheny Technologies closed on Friday at $44.58.
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