Alcoa Earnings Hit By Lower Alumina Prices and Aluminum Demand

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  • #22168
    ThePitBoss
    Participant

    Aluminum producer Alcoa reported better than expected second…

    [article]1767[/article]

    #26521
    ThePitBoss
    Participant

    Goldman added Alcoa to $GS’s Americas Conviction List and reiterate a Buy rating with target of $51 up from $48

    Implying 54% total return in 12 months.

    Say $AA has significant leverage to a positive commodity price outlook, where every 10% increase in aluminum prices corresponds to a 20% increase in EBITDA. The firm believes the company has been successful in its deleveraging strategy, which she expects to free up balance sheet capacity for capital returns.

    The firm says the stock’s underperformance from the May 2021 highs creates an even more attractive entry point for investors seeking aluminum exposure.

    #27062
    ThePitBoss
    Participant

    Argus upgraded Alcoa (AA) to Buy from Hold with a $58 price target

    Citing its improving balance sheet, rising aluminum prices and recent developments in the Chinese market. The firm is maintaining his 2021 EPS estimate and boosting its 2022 estimate.

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