Allegheny Technologies Corp.ATI

Morningstar Rating

Stock Research and Analysis

by Min Ye

Allegheny Technologies is transforming its product mix to focus on technically sophisticated, less commoditylike specialty metals and move away from standard stainless steels. We like the firm's product differentiation strategy and think this could Read more

Bulls Say

Industry consolidation has concentrated North American stainless steel production into the hands of three producers, which is a more favorable situation than in the past.

There are high switching costs for specialty metal users because of the critical nature of the material. As a result, Allegheny has been successful in passing on price increases to customers.

The aerospace and energy infrastructure industries have secular growth prospects over the next decade. Read more

Bears Say

Allegheny's recent results were hurt by lower metal prices, signaling broad weakness in the economy.

We expect a significant downturn in the home appliance and automotive sectors. Allegheny still draws a material portion of its revenue from these end markets.

The near-term titanium glut and capacity expansions worldwide will probably pressure results. Read more

Strategy

Allegheny strives to focus on technologically advanced and specialized metal products to supply diversified end markets, including the aerospace, chemical processing, energy, and medical industries. Read more

Management

CEO Pat Hassey was a longtime metal industry veteran before joining Allegheny's board in 2003. He took the CEO helm in the same year, leading the company through a successful turnaround. The company survived the severe downturn of the early 2000s, strengthened Read more

Profile

Allegheny Technologies is a major global producer of specialty metals, with products encompassing stainless steel, titanium, nickel-based alloys, and other exotic alloys. Read more

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