Detusche Bank Upgrades Alcoa (AA) to Buy; More Favorable Near-Term View of Aluminum

October 1, 2009 6:48 AM EDT

Detusche Bank upgrades Alcoa (NYSE: AA) from Hold to Buy

Deutsche analyst says, "A shift to a more favorable near-term view on aluminum combined with ebbing financial risk, lead us to upgrade Alcoa to Buy...DB has raised base metals price projections for 2010 by an average of 31%, but this reflects mainly a mark-to-market on strong 3Q09 price surges. DB has become more near-term favorable on aluminum versus copper, pointing out that while aluminum has poor LT fundamentals versus copper’s (which may re-rate vis-à-vis other metals), the near-term copper trade is crowded and subject to a further slowdown in Chinese stockpiling, while the market may be missing that much aluminum supply is tied up in medium-term financing arrangements."

Alcoa Inc. engages in the production and management of primary aluminum, fabricated aluminum, and alumina worldwide. It involves in the technology, mining, refining, smelting, fabricating, and recycling of aluminum.

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