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What: Shares of materials company Allegheny Technologies Incorporated (NYSE:ATI) popped as much as 11.1% today, hitting a high as I'm writing at 3:20 p.m. EDT.

So what: The move was driven by analysts at Deutsche Bank increasing their rating on the stock from hold to buy and upping their price target from $15 to $20 per share. The move comes after management began idling operations in Rowley, Utah, and consolidating certain titanium manufacturing in Albany, Oregon. 

The moves will result in $504 million in pre-tax charges but are expected to save $50 million in operating costs annually, starting next year, and will lower working capital by $50 million. So long-term, these changes could lead to higher margins and growing profits. That's what Deutsche Bank is betting on in its latest projection. 

Now what: These may be the right moves for Allegheny Technologies going forward, but the analysts are still making a lot of projections to be so bullish. The company has lost $491.5 million in the last four quarters alone, and it will take time to see fruit from the recent cost-cutting. I would be cautiously optimistic, but since the bounce is based on an analyst upgrade and nothing more concrete, I wouldn't be a buyer of the stock today.

Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.