Strategic Expansion and Market Positioning Drive ATI’s Growth Prospects: Buy Rating with Raised Price Target

Josh Sullivan, an analyst from Benchmark Co., maintained the Buy rating on ATI (ATI – Research Report). The associated price target is $81.00.

Josh Sullivan’s rating is based on several strategic factors that position ATI for future growth. Over the past two years, ATI has capitalized on a robust nickel alloy market driven by strong aftermarket demand and has expanded its titanium melt capacity significantly. This expansion is strategically aligned with the diversification of customer bases away from Russia and anticipation of a commercial aerospace ramp-up, particularly in wide-body aircraft production. With record levels of maintenance, repair, and overhaul backlogs, Sullivan anticipates that 2025 will present opportunities for ATI to exceed its guidance, supported by these backlogs and the completion of titanium capacity investments.
Additionally, ATI’s diversified nickel alloy portfolio is expected to continue benefiting from both aftermarket and original equipment manufacturer (OEM) production activities. The company’s engagements in near-aerospace markets, including defense and commercial nuclear metals, are experiencing renewed interest and growth due to secular trends. These factors collectively suggest that ATI is well-positioned for accelerated growth beyond 2025, prompting Sullivan to raise the price target to $81. This combination of strategic expansion and market positioning underlies Sullivan’s Buy rating for ATI’s stock.

Sullivan covers the Industrials sector, focusing on stocks such as FTAI Aviation, Kratos Defense, and Planet Labs PBC. According to TipRanks, Sullivan has an average return of 35.5% and a 66.87% success rate on recommended stocks.

In another report released on February 10, Barclays also maintained a Buy rating on the stock with a $75.00 price target.