10 Best Nickel Stocks to Invest in According to Analysts

4) ATI Inc. (NYSE:ATI)

Average Upside Potential: 24.6%

ATI Inc. (NYSE:ATI) is engaged in producing and selling specialty materials and complex components. The HPMC segment produces various materials, such as titanium and titanium-based alloys, nickel- and cobalt-based alloys, and superalloys, among others. The AA&S segment produces zirconium and related alloys, such as hafnium and niobium, nickel-based alloys, titanium and titanium-based alloys, among others.

While ATI Inc. (NYSE:ATI) remains confident in long-term demand, it continues to address uncertainty throughout its aerospace customer base because of an industry-wide slowdown of the aircraft production ramp. This was exacerbated by work stoppage in the supply chain. ATI Inc. (NYSE:ATI) remains focused on addressing these challenges in demand and production and expects improved performance for the remainder of 2024 and beyond. Overall, the company is expected to benefit from the recovery of the aerospace industry.

The aerospace industry has been prioritizing fuel efficiency and reduced emissions. ATI Inc. (NYSE:ATI)’s advanced materials and manufacturing processes should play a critical role in developing lighter, more efficient aircraft components. The company expects higher demand and production ramp-up in Boeing’s 787 program through 2025 and it projects to maintain EBITDA margin levels into Q4 despite inefficiencies. In Q3 2024, ATI Inc. (NYSE:ATI)’s adjusted EPS came in at $0.60, and adjusted EBITDA sat at $185.7 million, or 17.7% of sales.

Its expertise in advanced materials and manufacturing processes offers a competitive edge in serving the needs of aircraft manufacturers and defense contractors. With air travel rebounding and airlines looking to modernize their fleets, demand for new aircraft and components should increase. ATI Inc. (NYSE:ATI)’s capabilities in producing critical engine and airframe components place it well to capitalize on this trend.