Nomura Says Take Profit on Alcoa (AA) Before Aluminum Prices Tank

Article Stock Quotes (1) Comments (0)

Nomura is advising investors to take profits on Alcoa (NYSE: AA) before aluminum prices reverse.

"We see negative correlation risk to aluminum prices in the medium term following the strong run in aluminum prices post QE3 and what we believe was significant short covering on the LME," said analyst Curt Woodworth.

"We are lowering our target price on Alcoa to $9 from $12 to reflect more conservative forward multiples given continued weakness in aluminum prices and deepening structural challenges as China continues to overproduce and subsidize its domestic industry," he added.

Nomura Securities maintained a Neutral rating on Alcoa (NYSE: AA).

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 $9.13 yesterday, with a 52 week range of $7.97-$11.66.

---

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW

---

*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here

---

---

You May Also Be Interested In

• UPDATE: UBS Downgrades Carnival (CCL) to Neutral; Worst May Not Be Behind
• UPDATE: BTIG Starts ING U.S (VOYA) at Buy, Shares 'Significantly Undervalued'
• Jefferies Raises Numbers on hhgregg (HGG), But Remains on Sidelines

Create E-mail Alert Related Categories

Analyst Comments, Analyst EPS View, Analyst PT Change, Commodities

Related Entities

Nomura

Add Your Comment

Name

Subject

Body

Share on Facebook

Verification
can't see the text?
click here to refresh the image.
what's this?