Jefferies Cuts Estimates on Alcoa (AA); Customers Benefiting, Not Shareholders; Top Pick is FCX
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Price: $8.53 -1.84%
Rating Summary:
4 Buy, 6 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
4 Buy, 6 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade AA Now!
Jefferies maintains a 'Buy' on Alcoa (NYSE: AA) price target of $11.00 (from $12.00).
Analyst, Peter Ward, said, "Unfortunately, we continue to believe the benefits of Alcoa’s extensive cost cutting efforts are flowing largely to customers and not shareholders. With the strong dollar and sluggish aluminum prices, we are compelled to reduce estimates once again...In our opinion, there are better risk/reward opportunities within Metals and Mining than Alcoa. Freeport-McMoRan Copper and Gold (NYSE: FCX) remains our top pick."
FY12 EPS estimate cut from $0.70 to $0.40 and FY13 from $0.90 to $0.80. Jefferies remains at a 'Buy' as aluminum prices are deep into the cash cost curve, and further material weakness is unlikely.
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 $8.76 yesterday, with a 52 week range of $8.21-$16.16.
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Analyst, Peter Ward, said, "Unfortunately, we continue to believe the benefits of Alcoa’s extensive cost cutting efforts are flowing largely to customers and not shareholders. With the strong dollar and sluggish aluminum prices, we are compelled to reduce estimates once again...In our opinion, there are better risk/reward opportunities within Metals and Mining than Alcoa. Freeport-McMoRan Copper and Gold (NYSE: FCX) remains our top pick."
FY12 EPS estimate cut from $0.70 to $0.40 and FY13 from $0.90 to $0.80. Jefferies remains at a 'Buy' as aluminum prices are deep into the cash cost curve, and further material weakness is unlikely.
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 $8.76 yesterday, with a 52 week range of $8.21-$16.16.
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