UBS Maintains a 'Neutral' on Alcoa (AA); Low LME Pricing Compounds EU Weakness

UBS maintains a 'Neutral' on Alcoa (NYSE: AA) price target raised from $9.50 to $10.25.

UBS analyst says, "AA reported Q4 adjusted EPS from continuing operations of -$0.03; this figure excludes restructuring charges and special items of -$0.15. AA generated $656M in free cash flow – in part by sustaining historically low day’s working capital, and increased cash-on-hand during the quarter to $1.9B. Overall results were negatively impacted by lower LME prices, ongoing weakness in European markets, seasonality and higher costs. The restructuring charge mostly relates to the closure of 12% of AA’s smelting capacity to help lower its cost positioning."

"We have revised our 2012/2013 EPS estimates from $0.62/$1.55 to $0.58/$1.50 to reflect the revised capacity, segment outlooks and economic conditions."

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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