Deutsche Bank Starts Alcoa (AA) at Sell

December 1, 2016 6:47 AM EST
Get Alerts AA Hot Sheet
Price: $31.42 +0.35%

Rating Summary:
    15 Buy, 13 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 19 | Down: 33 | New: 11
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Deutsche Bank initiated coverage on Alcoa (NYSE: AA) with a Sell rating and a price target of $26. Analyst Jorge Beristain noted a recent rally in shares.

"Following its spin-off from Alcoa Inc (now renamed Arconic), we initiate Alcoa Corp with a 12-month Price Target of $26/share and Sell rating. Shares have rallied 31% in one month as a newly public company. At this point we believe the stock price more-than-fully reflects inferred value from Alumina Ltd, which accounts for over 90% of DBe equity value, even at spot pricing. We estimate that downstream assets roughly cover Net Debt and Retirement Obligations. As such, any downward correction in Alumina Ltd (on weaker bauxite or alumina pricing) is a downside risk. A complex structure and Arconic's pending 19.9% stake sales are additional headwinds," said Beristain.

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 $28.97 yesterday.



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