Start the conversation
We are retaining our Underperform recommendation on Allegheny Technologies (ATI) following its disappointing third quarter results. Both revenues and earnings missed Zacks Consensus Estimates. Profit tumbled year over year as sluggish economic conditions hurt demand for the company's products.
The company cut its sales forecast for 2012. While Allegheny is expected to continue benefiting from its new alloys/products and diversified global growth markets, it is contending with a soft economy and raw material cost pressures. Moreover, reduced raw material surcharges and low base prices for standard stainless products are affecting the results of the company's Flat-Rolled Products division.
Our long-term Underperform recommendation on the stock indicates that it will perform below the market. Our price target of $24 is based on 16x our fiscal 2012 earnings estimate.
ALLEGHENY TECH (ATI): Free Stock Analysis Report
To read this article on Zacks.com click here.