ATI price target raised to $56 from $49 at KeyBanc

KeyBanc raised the firm’s price target on ATI to $56 from $49 and keeps an Overweight rating on the shares following review of the company’s Q4 results, discussion with management, and the firm’s analysis. KeyBanc cites a greater onus on its 2025 valuation for the price target change. While ATI does have some headwinds in the first half of 2024, the firm is confident issues are transitory and set up a strong second half of 2024-2025 outcome. KeyBanc believes long-term cyclical growth investors will be attracted to ATI’s leverage to the commercial aerospace and defense recovery, enhanced by new capacity/capabilities; a leaner, more profitable AA&S segment; and recent pension liability eradication.