ATI initiated with a Buy at Deutsche Bank

Deutsche Bank analyst Scott Deuschle initiated coverage of ATI with a Buy rating and $70 price target. The analyst believes ATI has multiple rerate potential given its strong earnings compounding due to a combination of end-market growth, titanium share capture, price, and improving capital allocation. Over the next four years, the company can growth EBITDA at a 15% rate annually, earnings at a 17% rate, and adjusted free cash flow per share at a 41% rate, “while leaving plenty of capital allocation optionality on the table,” the analyst tells investors in a research note.