Citi Maintains Sell/High Risk rating on ATI following Ladish Acquisition

Citi maintains its Sell/High risk rating after Allegheny Technologies Inc. (NYSE: ATI) acquired Ladish (NASDAQ: LDSH).

In a note to clients, Citi writes, "We rate ATI High Risk due to its earnings volatility, share price volatility and relatively small size. Operating cash flow generation estimates should allow the company to fund its capital spending budget of $350-$400 mln annually over the next several years."

ATI closed yesteray at $48.41.