UPDATE: Bank Of America Upgrades Alcoa Inc As Cash Flow Recovery Is Looming In 2015E

In a report published Tuesday, Bank of America analyst Timna Tanners upgraded the rating on

from Neutral to Buy, and raised the price target from $16.00 to $18.00. In the report, Bank of America noted, “We upgrade Alcoa shares to Buy, noting: 1) a better cash flow outlook; 2) improved aluminum fundamentals; and 3) additional positive catalysts. With much of the costs related to closing high-cost operations now behind it and associated pension costs expected to also fall nearly $100M y/y, we expect FCF of $986B in 2015E and $1.3B in 2016E from an anticipated $288M in 2014E and $385M in 2013.” Alcoa Inc closed on Monday at $15.93.