Topeka Initiates Coverage on RTI International Metals at Buy on Attractive Aerospace Market

In a report published Tuesday, Topeka Capital Markets initiated RTI International Metals RTI with a Buy rating and announced a $38 price target. Topeka Capital Markets reported that, “As the only remaining domestic pure-play publicly traded producer and supplier of titanium, we believe RTI is well positioned to benefit from the attractive commercial aerospace market, which accounts for approximately 55% of revenue. While sequestration represents a risk to RTI's defense business, we view this as relatively nominal given its long-term supply agreements, program specific and international exposures. The Company's significant leverage to the commercial aerospace market, its high value add product mix, capital projects and the potential for additional acquisitions are supportive of our Buy rating." RTI International Metal's shares closed at $29.27 on Monday.