Allegheny Technologies "buy," target price raised

07/27/07 - Davenport & Co.

NEW YORK, July 27 (newratings.com) - Analysts at Davenport & Company reiterate their "buy" rating on Allegheny Technologies (ATI), while raising their estimates for the company. The 12-month target price has been raised from $140 to $145.

In a research note published yesterday, the analysts mention that the company has reported its 2Q07 EPS ahead of the estimates and the consensus. Allegheny Technologies’ earnings are likely to be boosted in 2H by a decline in the nickel prices, the analysts say. There is a possibility of the company’s profits accelerating substantially in the forthcoming years, mainly driven by the rising demand for metals, especially titanium, Davenport & Company adds. The EPS estimates for 2007 and 2008 have been raised from $7.93 to $8.09 and from $8.67 to $8.77, respectively.