Analysts raised ATI's price target following improved aerospace production volumes and stronger commercial demand, while maintaining caution over defense exposure, resulting in a fair value increase from $100.88 to $102.43.
Analyst Commentary
- Bullish analysts highlighted improved production volumes, delivery rates, and orders for Boeing 737 aircraft, indicating stronger demand and stability across the commercial aerospace supply chain, benefiting ATI.
- Upward revisions in price targets reflect enhanced commercial aerospace market outlook, with ATI well-positioned as a key supplier.
- Analysts are expecting continued near-term volatility in the U.S. defense sector, leading to more cautious recommendations despite higher targets.
- Improved guidance and execution in sectors tied to both commercial and defense end markets contributed to increased confidence in ATI’s earnings potential.
- Recent price target increases were driven primarily by strength in commercial aerospace, with more modest sentiment around defense exposure.
What's in the News
- CFO Don Newman will retire in March 2026; ATI is searching for a successor. Newman will remain as CFO until retirement and then transition to an advisory role for a smooth handoff.
- ATI extended and expanded its long-term titanium supply agreement with Boeing, enhancing its supplier position for both narrowbody and widebody programs, as well as Boeing’s subsidiaries.
- ATI completed the repurchase of 6,371,652 shares (4.57% of shares outstanding) for $430.13 million under its current buyback program.
Valuation Changes
Summary of Valuation Changes for ATI
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $100.88 to $102.43.
- The Future P/E for ATI remained effectively unchanged, moving only marginally from 24.80x to 25.19x.
- The Discount Rate for ATI remained effectively unchanged, moving only marginally from 8.02% to 8.03%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.