Allegheny Technologies (ATI) Stock Forecast & Price Target

ATI Inc demonstrates a positive financial outlook driven by expanding profitability alongside sales due to an improved mix, higher volumes, and reduced pension expenses. The company reported a 9% year-over-year growth in airframe sales, bolstered by increasing customer orders in anticipation of heightened production rates from both Boeing and Airbus. Additionally, ATI is expected to benefit from surging demand in the aerospace sector, alongside sustained market share gains in titanium flat rolled products and increased requirements for both original equipment manufacturer (OEM) and maintenance, repair, and operations (MRO) parts.

ATI Inc. has experienced a decline in sales across key end markets such as specialty energy, electronics, medical, and industrial on a year-over-year basis, indicating worsening conditions outside the aerospace and defense (A&D) sector. The company's valuation multiple has diminished to levels several turns below peers, signifying a weakening market perception, despite a strategic shift towards higher-margin A&D volumes. Furthermore, the company's financial metrics suggest a reliance on an estimated 19x multiple of 2026 EBITDA, which remains below the valuations seen in comparable firms, highlighting a potential undervaluation relative to the overall market.