Goldman Sachs Downgrades Alcoa (AA) to Neutral

Goldman Sachs downgraded Alcoa (NYSE: AA) from Buy to Neutral with a 6-month price target of $11, citing a lack of near-term catalyst.

The firm lowered 4Q estimate from a profit of $0.08 to a loss of $0.03 on a lower aluminum price and higher input costs. The firm also cut 2012/13/normalized estimates from $1.25/$1.55/$1.85 to $0.60/$0.85/$1.60 on lower aluminum prices and lower margin assumptions.

Goldman said they were mistaken in their aluminum price forecast, which has tumbled more than 25%. In addition, events in Europe have been a drag on demand there.

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 $9.91 yesterday.

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