Jefferies Cuts Estimates on Aloca (AA), Keeps Buy Rating

Jefferies lowered estimates and its price target on Alcoa (NYSE: AA) from $14 to $12 but is keeping their Buy rating.

The firm cut Q4 EPS estimates to $0.00, which is below the Street estimate of $0.06. This comes as Alcoa has disclosed it expects rising sequential costs at the same time that LME aluminum prices weakened in the fourth quarter, the firm notes.

While this is disappointing, the firm belives shares of Alcoa still offer modest upside. "With some improving U.S. economic data, we think Alcoa shares could bounce 20% to the upside," the analyst noted.

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 $8.86 yesterday.

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