UPDATE: J.P. Morgan Upgrades RTI International Metals to Overweight, Raises PT on Multiple Positive Factors

In a report published Friday, J.P. Morgan analyst Michael F. Gambardella upgraded the rating on RTI International Metals RTI from Neutral to Overweight, and raised the price target from $32.00 to $34.00. In the report, J.P. Morgan noted, “We are upgrading shares of RTI to Overweight from Neutral based on a combination of increasingly attractive valuation and an approaching inflection point in titanium mill product demand from RTI's primary customer, Airbus. Shares of RTI are down 29% year to date, significantly underperforming other specialty and aerospace metal suppliers and all but a few miners under coverage. We remained cautious on the stock as recently as May 7, post 1Q14 earnings, but the stock's subsequent 12% slide to nearly a 52-week low provides an attractive entry point. RTI commands a unique and increasingly valuable position as the sole North American supplier of titanium mill products for Airbus with an estimated 30-35% market share. Based on forecasts from J.P. Morgan's Aerospace & Defense team as well as recent commentary and test flight results from Airbus, we expect higher A350 XWB build rates will help drive RTI's 2015 earnings ahead of expectations; our updated estimates are 19% higher than consensus.” RTI International Metals closed on Thursday at $24.31.