UPDATE: Bank of America Reinstates Neutral, $11 Target on Alcoa

Bank of America reinstates coverage of Alcoa (NYSE: AA) with a Neutral rating and an $11 target price as it thinks it is too early for an aluminum bull case.

BofA says, “Our cautious view reflects concern aluminum LME prices can be under pressure from excess supply given warehouse deals unwinding and slower demand from Europe and China. Rising costs near term can hurt, but eventually should encourage high-cost, unprofitable capacity to shutter. Strong downstream performance and end market demand are encouraging, but for now appear insufficient to offset alumina/aluminum pressure.”

AA closed at $9.64 per share on Friday.