Dahlman Rose Downgrades Alcoa (AA) to Hold Sees Continued Weakness in Prices; Spin-Off Could Boost Fortunes
Tweet Send to a Friend
Get Alerts AA Hot Sheet
Price: $8.17 -0.49%
Rating Summary:
4 Buy, 6 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 21
Rating Summary:
4 Buy, 6 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 21
Trade AA Now!
Dahlman Rose downgraded Alcoa (NYSE: AA) from Buy to Hold.
The firm expects aluminum prices to remain range-bound and do not believe the shares will be appropriately valued under the current corporate structure. They see prices fluctuating between $0.85 and $1.05/lb over the next 12 months. Despite an economy showing signs of weakness, China continues to produce at record levels.
A difficult decision to spin off its downstream businesses could ultimately be the key, the firm said. "Alcoa's Global Rolled Products and Engineered Products and Solutions segments have performed quite well during this time, and this is where Alcoa's future lies, in our opinion," the analyst said. "We believe the value of Alcoa's parts is far greater than its current share price, but do not believe that value will be realized in the company's current form."
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 $8.89 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
The firm expects aluminum prices to remain range-bound and do not believe the shares will be appropriately valued under the current corporate structure. They see prices fluctuating between $0.85 and $1.05/lb over the next 12 months. Despite an economy showing signs of weakness, China continues to produce at record levels.
A difficult decision to spin off its downstream businesses could ultimately be the key, the firm said. "Alcoa's Global Rolled Products and Engineered Products and Solutions segments have performed quite well during this time, and this is where Alcoa's future lies, in our opinion," the analyst said. "We believe the value of Alcoa's parts is far greater than its current share price, but do not believe that value will be realized in the company's current form."
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 $8.89 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: BofA/Merrill Lynch Downgrades Cliffs Natural Resources (CLF) to Underperform
- UPDATE: BofA/Merrill Lynch Upgrades Adobe (ADBE) to Buy
- UPDATE: Raymond James Downgrades Gevo, Inc. (GEVO) to Market Perform
Create E-mail Alert Related Categories
Downgrades, Hot Downgrades
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
