Stifel Nicolaus Raises PT On ATI To $85

Stifel Nicolaus has raised its price target from $78 to $85 on Allegheny Technologies

in light of the company's Ladish deal. Says Stifel Nicolaus, in its report, “Ladish will become part of the High Performance Metals (HPM) segment within Allegheny. Due to the charges and purchase accounting adjustments to be recognized in 2011, our EPS forecast declines, but we show the accretive nature of the transaction in 2012… Based on our prior coverage of Ladish, we tried a number of variables on potential accretion in 2012 and arrived at a range of as low as $0.35 to as high as $0.75. We decided to be conservative and stayed closer to the low end of the range. Nonetheless we think there is a chance for a better result.” Stifel Nicolaus maintains a Buy rating on the stock. ATI closed at $63.78 on Friday.