Nomura Says Take Profit on Alcoa (AA) Before Aluminum Prices Tank
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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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Nomura is advising investors to take profits on Alcoa (NYSE: AA) before aluminum prices reverse.
"We see negative correlation risk to aluminum prices in the medium term following the strong run in aluminum prices post QE3 and what we believe was significant short covering on the LME," said analyst Curt Woodworth.
"We are lowering our target price on Alcoa to $9 from $12 to reflect more conservative forward multiples given continued weakness in aluminum prices and deepening structural challenges as China continues to overproduce and subsidize its domestic industry," he added.
Nomura Securities maintained a Neutral rating on Alcoa (NYSE: AA).
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 $9.13 yesterday.
"We see negative correlation risk to aluminum prices in the medium term following the strong run in aluminum prices post QE3 and what we believe was significant short covering on the LME," said analyst Curt Woodworth.
"We are lowering our target price on Alcoa to $9 from $12 to reflect more conservative forward multiples given continued weakness in aluminum prices and deepening structural challenges as China continues to overproduce and subsidize its domestic industry," he added.
Nomura Securities maintained a Neutral rating on Alcoa (NYSE: AA).
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 $9.13 yesterday.
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