ATI (ATI – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Gautam Khanna from TD Cowen maintained a Buy rating on the stock and has a $70.00 price target.
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Gautam Khanna has given his Buy rating due to a combination of factors that highlight ATI’s potential for growth and resilience in the market. One notable reason is the robust demand for engine alloys and forgings, which was evident in the fourth quarter as the company secured early shipment orders, showing confidence in its production capabilities. Despite some conservative growth guidance compared to peers, ATI’s backlog remained stable, and its airframe shipments increased, suggesting potential market share retention against competitors such as Russia’s VSMPO in the aerospace sector.
Furthermore, ATI’s projected EBITDA growth for the coming quarters indicates a promising trajectory, with expectations of a significant increase from the first to the fourth quarter. While the company experienced some financial charges related to customer contracts, these are deemed final negotiations rather than indicative of pricing pressures. Additionally, ATI’s stock is perceived as undervalued compared to its peers, and this, along with its significant aerospace original equipment exposure, strengthens the case for a Buy rating, although certain operational challenges may limit immediate re-rating potential.
In another report released today, Susquehanna also maintained a Buy rating on the stock with a $73.00 price target.
Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ATI in relation to earlier this year.