Allegheny Technologies (NYSE:ATI) Facing stainless steel Challenges

Even though aerospace looks fairly solid for Allegheny Technologies (NYSE:ATI), the weakness in stainless steel, which accounts for close to 50 percent of their revenue, will put pressure on the stock.

Goldman Sachs (NYSE:GS) said, "We remain confident on the medium- to long-term potential of the aerospace cycle, particularly once the Boeing 787 production ramps up. However, we expect stainless steel fundamentals (about 50% of ATI’s revenue) for ATI will remain challenged in the near term."

Goldman maintains a "Neutral" rating on Allegheny, which closed Thursday at $53.95, up $1.75, or 3.35 percent. They raised their price target on them from $49 to $61.