Dahlman Rose Lowers PT and Estimates on Alcoa (AA); Maintains 'Buy' Rating
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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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Dahlman Rose maintains a 'Buy' on Alcoa (NYSE: AA) price target cut from $17.50 to $14.65.
Dahlman analyst says, "Alcoa reported 4Q11 adjusted EPS (exclusive of $159 MM in restructuring charges related to capacity curtailments) of ($0.03) versus our estimate of $0.01 and consensus of ($0.02), which compares to adjusted EPS of $0.15 in 3Q11 and $0.21 in 4Q10. Variance from our estimate was due primarily to non-operational items, as segment ATOI of $241 MM was in line with our estimate. Overall performance suffered from realized pricing decreases, despite sequential shipment increases in the alumina and primary aluminum segments."
"We are lowering our 2012 LME aluminum price forecast to $1.00/lb from $1.10/lb and initiating a 2013 estimate of $1.10/lb. We agree with management that current prices will force meaningful global capacity out of the market; however, until the market sees sustained production discipline, we do not believe aluminum prices will move meaningfully higher."
(Dahlman drops FY12 EPS estimate to $0.40 from $1.15 adn FY13 to (0.10) from $0.95)
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 $9.43 yesterday.
Dahlman analyst says, "Alcoa reported 4Q11 adjusted EPS (exclusive of $159 MM in restructuring charges related to capacity curtailments) of ($0.03) versus our estimate of $0.01 and consensus of ($0.02), which compares to adjusted EPS of $0.15 in 3Q11 and $0.21 in 4Q10. Variance from our estimate was due primarily to non-operational items, as segment ATOI of $241 MM was in line with our estimate. Overall performance suffered from realized pricing decreases, despite sequential shipment increases in the alumina and primary aluminum segments."
"We are lowering our 2012 LME aluminum price forecast to $1.00/lb from $1.10/lb and initiating a 2013 estimate of $1.10/lb. We agree with management that current prices will force meaningful global capacity out of the market; however, until the market sees sustained production discipline, we do not believe aluminum prices will move meaningfully higher."
(Dahlman drops FY12 EPS estimate to $0.40 from $1.15 adn FY13 to (0.10) from $0.95)
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 $9.43 yesterday.
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