Barclays Maintains an 'Equalweight' on Alcoa (AA); Investor Day Takeaways
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Price: $51.85 +2.57%
Rating Summary:
20 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
20 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Equalweight' on Alcoa (NYSE: AA) price target lowered $1 to $13.
Barclays analyst says, "Investor Day Takeaways: 1) As we previewed yesterday, the focus was primarily to provide a progress report on the company's long-term incremental profit targets originally presented a year ago. Bottom line: Alcoa is still on track to achieve its 2013-2015 goals in each of the four main segments, although the upstream businesses are significantly further from the targets than the downstream businesses. 2) Capital spending and pension payments will likely consume most free cash flow during 2012-2014, with annual outflows totaling ~$2b per year to fund pensions, Ma'aden, maintenance capex, pension obligations, and Quebec modernization plans. 3) We are cutting our Q4 estimates from $0.06 to break-even, primarily due to the combination of higher cost assumptions and more significant sequential demand weakness in flat rolled products, per management's comments during the presentation."
"We are lowering our Street-low Q4 estimate to break-even from $0.06. (FY11 EPS estimate cut from $0.80 to $0.74)
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 $10.20 yesterday.
Barclays analyst says, "Investor Day Takeaways: 1) As we previewed yesterday, the focus was primarily to provide a progress report on the company's long-term incremental profit targets originally presented a year ago. Bottom line: Alcoa is still on track to achieve its 2013-2015 goals in each of the four main segments, although the upstream businesses are significantly further from the targets than the downstream businesses. 2) Capital spending and pension payments will likely consume most free cash flow during 2012-2014, with annual outflows totaling ~$2b per year to fund pensions, Ma'aden, maintenance capex, pension obligations, and Quebec modernization plans. 3) We are cutting our Q4 estimates from $0.06 to break-even, primarily due to the combination of higher cost assumptions and more significant sequential demand weakness in flat rolled products, per management's comments during the presentation."
"We are lowering our Street-low Q4 estimate to break-even from $0.06. (FY11 EPS estimate cut from $0.80 to $0.74)
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 $10.20 yesterday.
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