Deutsche Bank Maintains a 'Hold' on Alcoa (AA); Expecting Q2 Miss
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Price: $8.61 +1.29%
Rating Summary:
4 Buy, 6 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
4 Buy, 6 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade AA Now!
Deutsche Bank maintains a 'Hold' on Alcoa (NYSE: AA) price target of $9.00 (from $10.00).
Analyst, Jorge Beristain, said, "We expect Alcoa to report adjusted diluted EPS of 4c vs 10c in 1Q12 primarily due to ~5c/lb QoQ decline in realized aluminum prices to $1.06/lb and various one-offs. Alcoa's lower QoQ realized aluminum prices are expected to be driven by ~6c/lb lower QoQ LME aluminum price to 92c/lb (@ 15 day lag) partly offset by +1c/lb QoQ gain in aluminum premia to 14c/lb (a surcharge added to LME pricing based on distance from plant). Additionally, earnings will be impacted by lower QoQ aluminum/alumina volumes, $10m maintenance at Alumina division, $30m energy and Massena fire impacts, partly off-set by $10m lower QoQ raw material benefits. Our 2Q12E EPS is 1c below FactSet consensus of 5c."
For an analyst ratings summary and ratings history on Alcoa click here. For more ratings news on Alcoa click here.
Shares of Alcoa closed at $8.73 yesterday, with a 52 week range of $8.21-$16.60.
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Analyst, Jorge Beristain, said, "We expect Alcoa to report adjusted diluted EPS of 4c vs 10c in 1Q12 primarily due to ~5c/lb QoQ decline in realized aluminum prices to $1.06/lb and various one-offs. Alcoa's lower QoQ realized aluminum prices are expected to be driven by ~6c/lb lower QoQ LME aluminum price to 92c/lb (@ 15 day lag) partly offset by +1c/lb QoQ gain in aluminum premia to 14c/lb (a surcharge added to LME pricing based on distance from plant). Additionally, earnings will be impacted by lower QoQ aluminum/alumina volumes, $10m maintenance at Alumina division, $30m energy and Massena fire impacts, partly off-set by $10m lower QoQ raw material benefits. Our 2Q12E EPS is 1c below FactSet consensus of 5c."
For an analyst ratings summary and ratings history on Alcoa click here. For more ratings news on Alcoa click here.
Shares of Alcoa closed at $8.73 yesterday, with a 52 week range of $8.21-$16.60.
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