Allegheny Technologies Shares Rise After Upgrade

HARTFORD, Conn. (AP) — Shares of Allegheny Technologies Inc. rose Thursday after an analyst upgraded the shares saying the jet-engine market may experience an initial recovery in 2010.

UBS analyst Timna Tanners also increased her price target to $42 from $31, and sharply raised her profit estimates on the Pittsburgh-based titanium producer. Her new rating on the shares is "Buy." It was previously "Neutral."

"We think the end of jet engine and other destocking can see an initial recovery into 2010 even before orders ramp up into 2011," she said in a note to clients.

Boeing Co. and rival Airbus and other aeronautics companies use large amounts of titanium in fuselages and engines of jet aircraft.

UBS believes Boeing will likely cut its 787 production forecast, "but even with a cautious 787 build forecast and some offsetting 777 and 737 pull back, titanium demand stands to rise 6 percent into 2011," Tanners said.

Concerns among suppliers about Boeing's build rates appear to have already had on impact on Allegheny Technologies in this year's lighter orders and destocking, she said.

Tanners increased her 2009 earnings estimate to 25 cents per share from 22 cents per share and boosted her 2010 estimate to $1.45 per share from $1.20 per share.

Analysts surveyed by Thomson Reuters expect earnings this year of 26 cents per share and forecast profit for 2010 of $1.49 per share.

Shares rose $1.21, or about 3.2 percent, to $38.80 afternoon trading.