- Allegheny Technologies (ATI +8.8%) is on the move after Deutsche Bank upgrades shares to Buy from Hold with a $20 price target, raised from $15, citing easing concerns over leverage following the closure of its Rowley titanium sponge facility.
- ATI management is beginning to exit low-margin businesses and close high cost operations. which should benefit the company beginning in 2017, as the company announced several actions on Aug. 24 to improve future financial performance, which included the indefinite idling of the Rowley plant.
- The firm calculates that balance sheet leverage based on net debt to EBITDA could improve to 3.4x by year-end 2017 following a Q3 equity raise (20% dilution) vs. 10x in 2016.