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.