Market Overview

UPDATE: Deutsche Bank Downgrades Alcoa on Deteriorating Aluminum Business Outlook

Share:
Related AA
3D Printing Facility Could Be Alcoa's Path To Modernization
Glick: If I Had To Buy One Stock, It'd Be Alcoa
Alcoa (Investor's Business Daily)

In a report published Wednesday, Deutsche Bank analyst Jorge Beristain downgraded the rating on Alcoa (NYSE: AA) from Hold to Sell, and lowered the price target from $9.00 to $5.50.

In the report, Deutsche Bank noted, “We downgrade Alcoa to Sell from Hold on the back of a deteriorating outlook for its Primary aluminum business. Our new Price Target of $5.5/share (from $9 previously) implies 32% downside from current levels. Our downgrade is primarily driven by DB's lower medium-term aluminum price outlook (12-13% lower in 2014-15 to $0.82 and $0.88/lb, respectively), which cuts 2014E and 2015E EPS by over half. In this report we postulate that Alcoa should consider spinning off Primary to reduce its negative drag and maximize equity value.”

Alcoa closed on Tuesday at $8.17.

Latest Ratings for AA

DateFirmActionFromTo
Aug 2015UBSUpgradesNeutralBuy
Jul 2015CitigroupMaintainsBuy
Jul 2015MacquarieMaintainsNeutral

View More Analyst Ratings for AA
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Jorge BeristainAnalyst Color Downgrades Analyst Ratings

 

Related Articles (AA)

View Comments and Join the Discussion!

Get Benzinga's Newsletters