Analysts at Deutsche Bank cut the price target of Alleghany Technologies Inc. (NYSE: ATI) while maintaining Hold rating on the latter. Analysts' state that they were less impressed by the latter's latest quarterly financial results in the absence of near-term catalysts.
In its fiscal 2011 third quarter, Alleghany Technologies reported an increase in profit to $70.6 million or $0.63 per share, excluding acquisition related expenses of $8.3 million, net of tax, from $1 million or $0.01 cent per share in the same quarter of 2010. Results exceeded consensus of $0.61 per share. Sales in the quarter increased 28 percent to $1.35 billion, driven by higher shipments for most high-value products, higher raw material surcharges and increases in average base selling prices for many products. It beat consensus of $1.39 billion. The company's EPS beat DB analysts' estimate of $0.62 per share. They state that EPS was aided by lower interest and taxes. The company lowered its FY 2011 outlook. DB analysts state that they find ATI's end-market and product exposures and long-term growth potential attractive.
On a year-to-date basis, ATI has a share performance of -19.90 percent, and as compared to Standard & Poor's, it has a YTD share performance of 0.38 percent.
Alleghany Technologies is engaged in the production and sale of specialty metals worldwide and operates through three segments, high performance metals, flat-rolled products, and engineered products. It has a market capitalization of $5.05 billion with a P/E ratio of 33.93.
Shares of ATI rose 8.41 percent or $3.65 to trade at $47.32.