UPDATE: BMO Capital Markets Reiterates Underperform Rating, Lowers PT on Alcoa Following In-Line Q2/13 Earnings

In a report published Tuesday, BMO Capital Markets analyst Tony Robson reiterated an Underperform rating on Alcoa AA, but lowered the price target from $8.00 to $7.00. In the report, BMO Capital Markets noted, “Alcoa reported underlying earnings of US$76M, or US$0.07/sh, roughly in line with BMO Research's forecast of US$0.08/sh and consensus of US$0.06/sh (which fell from US$0.11/sh two weeks ago). One-time items of US$195M, including US$113M in restructuring costs, resulted in a headline loss of US$0.11 per share. Revenue of US$5.8B was essentially flat quarter on quarter, despite an 8% drop in aluminum price, with adjusted EBITDA of US$616M, from US$690M in Q1/13. Net debt at the end of the period was US$7.2B, down from US$7.4B at the end of Q1/13 (but up from Q4/12), for net debt to equity of 45%.” Alcoa closed on Monday at $7.92.