Allegheny Technologies (ATI) Stock Forecast & Price Target

ATI Inc. is positioned for profitability expansion driven by an improving sales mix, increased volume, and reduced pension expenses, particularly in its High-Performance Materials segment, which primarily serves the aerospace and defense sectors. Airframe sales have experienced a year-over-year growth of 9%, supported by increased customer orders in anticipation of rising production rates from major manufacturers like Boeing and Airbus, signaling robust demand for both OEM and MRO parts. The company's strong market share gains in titanium flat rolled products and expectations for steady growth in jet engine demand further underscore a positive outlook for ATI as it capitalizes on recovering production rates and continued investments in key end markets.

ATI Inc. has experienced a decline in sales across several key sectors, including specialty energy, electronics, medical, and industrial markets, with a worsening outlook noted in non-aerospace and defense (A&D) end markets. The company's valuation multiple has deteriorated significantly, trading several turns below its historical levels and compared to peers such as CRS, signaling a loss of market confidence. Despite a focus on higher-margin A&D volumes, the overall market performance raises concerns about ATI's profitability and long-term growth prospects, particularly given the challenges in non-A&D segments.