Goldman Sachs Upgrades Alcoa (AA) to Buy

May 2, 2011 7:26 AM EDT
Get Alerts AA Hot Sheet
Price: $48.56 --0%

Rating Summary:
    19 Buy, 10 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 14 | Down: 3 | New: 23
Trade Now! 
Join SI Premium – FREE
Goldman Sachs upgraded Alcoa (NYSE: AA) from Neutral to Buy and raised their 6-month price target from $17 to $22, citing improving supply chain dynamics.

The firm states, "We view the structural industry change, driven by the de-linking of alumina from the aluminum price, as a potential major long-term contributor to Alcoa, which is the largest global third-party alumina seller." Goldman is also positive on the cyclical upturn in the aerospace cycle.

The firm sees Alcoa earnings $1.40/$1.65 in 2011/2012, up from $1.10/$1.25, and about 6%/11% higher than consensus. The firm said Alcoa can earn $1.95 on a normalized basis.

For more ratings news on Alcoa click here and for the rating history of Alcoa click here.

Shares of Alcoa closed at $17.09 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Hot Upgrades, Upgrades

Related Entities

Goldman Sachs, Earnings