UPDATE: Topeka Capital Markets Initiates Allegheny Technologies at Buy on Fundamentals

Topeka Capital Markets initiated coverage on Allegheny Technologies (NYSE: ATI) with a Buy rating and a $39 price target.

Topeka Capital Markets noted, "As a leading specialty metals producer, the Company should benefit from both cyclical and secular drivers in both the commercial aerospace and energy markets as well as an eventual re-acceleration in the broader economic recovery. ATI has numerous initiatives to continue to improve its product mix, cost structure and its production capabilities. While the stainless steel business has experienced significant headwinds, we believe the worst of the decline is behind the Company. Additionally, given the lean inventory levels we believe even modest improvements in economic conditions should result in stronger fundamentals."

Allegheny Technologies closed at $28.50 on Monday.

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.