LOS ANGELES Allegheny
Technologies Inc.s (ATIs) common stock has been
downgraded by investment firm Cowen & Co. LLC due to
"anemic" prospects in some of its major markets.
Cowen analysts Gautam Khanna and
Mark Hokanson lowered their rating of ATIs shares to
"neutral" from "outperform," citing the impact of an "anemic"
U.S. economic outlook on ATIs stainless markets and
pricing trends in the spot titanium market. Analysts also cited
"still-elevated" aerospace titanium inventories at the Boeing
Commercial Airplane unit of Chicago-based Boeing Co. and
"diminished" opportunities in the nuclear markets that support
ATIs exotic alloys business.
Among the factors likely to
hobble ATIs pricing power in the spot titanium market are
softer demand in the nonaerospace industrial market, dwindling
pressure on upstream costs from rutile inflation and soft scrap
ATIs peak earnings "power"
now appears to be under $4 per share in 2015 vs. its earlier
estimate of $5 to $6 per share, while Wall Streets
current estimates for 2013 earnings carry "severe downward
revision risk," Cowen said.
Pittsburgh-based ATI said it doesnt comment on
securities analysts ratings.