Morgan Stanley Sees Full Valuation, Supportive Factors for Alcoa

In a report published Tuesday, Morgan Stanley analyst Paretosh Misra reiterated an Equal-Weight rating on Alcoa AA. In the report, Morgan Stanley noted, “We think AA shares are fully valued & overall aluminum fundamentals remain challenging. That said, we see 3 near-term supportive factors: i) 1Q cons. is too low, ii) many investors focused on 2020 auto sheet demand growth story & less concerned with near-term earnings, & iii) risk to bauxite supply.” Alcoa closed on Monday at $11.94.