Cowen analyst Gautam Khanna noted that Allegheny Technologies' (ATI) Q1 pre-announcement of EPS well below consensus did not include an update to the company's 2019 guidance, but he believes a "formal cut appears inevitable" when the company announces its full results on April 23. Many, but not all, of the headwinds cited will abate after Q2, though he has argued before that the company's initial 2019 guidance "was simply too high to begin with," said Khanna. He expects the stock to find support near $24 and sees upside potential if Boeing's (BA) 737 Max challenges abate within 3-5 months, added Khanna, who keeps an Outperform rating on Allegheny shares with a $35 price target.

TD Cowen analyst Gautam Khanna raised the firm's price target on ATI (ATI) to $67 from $55 and keeps a Buy rating on the shares. The firm said Q1 results were strong versus low expectations and raised 2024 guidance allays fears for now that the company's 2024 targets won't be dragged down by Boeing's (BA) 737Max production challenges.

Reports Q1 revenue $1.04B, consensus $1.03B. "ATI delivered a strong start to 2024," said CEO Robert Wetherbee. "Year-over-year growth in aerospace and defense sales drove results across ATI, with Q1 aerospace and defense sales up 7% over the prior year. Additionally, strong demand continues for our advanced specialty alloys that deliver 'aero-like' margins. We exceeded expectations for adjusted earnings per share as the team delivered excellent performance across ATI. We moved past the outages and weather impacts that shaped our guidance for the first quarter. Our focus on improving working capital intensity delivered significant improvements in year-over-year free cash flow performance. Our strong balance sheet enabled us to fully deploy $150M of authorized share repurchases in Q1 of 2024."