First Global Downgrades Alcoa (AA) to Market Underperform; Aluminum Prices Expected to Remain Under Pressure

First Global downgraded Alcoa (NYSE: AA) to Market Underperform.

First analyst says, "Spot aluminum prices at the LME witnessed a sharp correction in Q3 CY11, with the average price declining from $2600 per tonne in Q2 CY11 to $2400 per tonne...The uncertain global economic outlook, due to the European debt crisis and slower than expected growth in the US economy, is expected to exert downward pressure on aluminum prices over the short term...Moreover, concern remains over the increase in input costs, due to higher raw material
and energy costs, which will exert pressure on margins."

For more ratings news on Alcoa click here and for the rating history of Alcoa click here.

Shares of Alcoa closed at $10.26 yesterday.

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