Goldman Sachs Reiterates Neutral on Alcoa as Low Aluminum Prices Weigh on Earnings

In a report published Tuesday, Goldman Sachs analyst Sal Tharani reiterated a Neutral rating and $8.00 price target on

. In the report, Goldman Sachs noted, “The marking to market of aluminum prices and FX rates lowered our 3Q13 EPS forecast to $0.05 from $0.08. We expect this quarter to be weaker sequentially, with a $0.03 per share negative impact from aluminum prices and FX, based on company guided sensitivities. However, this is partially offset by a $10mn ($0.01/sh) gain in ATOI in the company's upstream segment, as guided during 2Q13 earnings. Therefore, we expect EPS for 3Q13 to decline to $0.05 from $0.07 in 2Q13. Consensus is slightly above our estimate at $0.06. There are no changes to our forward estimates. We maintain our six-month P/E-, EV/EBITDA-, and DCF-based target price of $8.00. We maintain our Neutral rating on AA.” Alcoa closed on Monday at $7.97.