UPDATE: Goldman Sachs Raises PT to $59 on Allegheny Technologies

Goldman Sachs reiterates its Buy rating on Allegheny Technologies

and raises its price target up $4 to $59 a share as higher multiples offset lower estimates. Goldman Sachs notes, "We are lowering our 2012/2013 estimates for ATI to $2.85/$4.50 from $3.20/$5.00, partly due to higher pension costs and partly for lower margin estimates for stainless business. Our new 2012 quarterly estimates are $0.44/$0.81/$0.82/$0.79, revised from $0.64/$0.94/$0.92/$0.70. Our 2012 estimate incorporates an 11% increase in revenue (vs. company guidance of at least 10%) and operating margin of 14.7% (vs. guidance of 13%-14%) as we believe that the company is very conservative in its guidance." ATI closed at $50.03 a share on Wednesday.