UPDATE: Stifel Nicolaus Increases Target to $13 on Alcoa

Stifel Nicolaus raises its target price on Buy-rated Alcoa AA on higher valuation multiples, despite lowering Q1 EPS estimates lower. Stifel Nicolaus notes, "We are lowering our 1Q12 EPS estimate from $0.08 to $0.05 based on restructuring charges related to the shutdown of the aluminum plants in Europe, though somewhat offset by slightly higher realized aluminum prices of $2,200/metric ton, vs. our previous estimate of $2,100/metric ton. But we are also taking this opportunity to raise our target price from $11 to $13. Our new target price applies a slightly higher multiple (7.0x vs. 6.0x previously) to Alcoa's down-stream Engineered Products and Solutions business segment, which we believe is warranted given comparisons to the peer group of aerospace parts suppliers." AA closed at $10.22 a share yesterday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetReiterationIntraday UpdateAnalyst RatingsStifel Nicolaus
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!