UPDATE: Goldman Sachs Upgrades Alcoa as Solid Downstream Growth More Than Offsets Weak Upstream
In a report published Monday, Goldman Sachs analyst Sal Tharani upgraded the rating on Alcoa (NYSE: AA) from Neutral to Buy, and raised the price target from $8.00 to $11.00.
In the report, Goldman Sachs noted, “We upgrade AA to Buy from Neutral, on the back of strong growth from its high-margin downstream business and its continued transition to a mainly downstream business. We see a long-term value opportunity in Alcoa as the market begins to value AA as a leading downstream aluminum producer with an improving cost structure on the upstream, providing upside irrespective of continued weakness in the aluminum market. Downstream growth is expected to be driven by automotive and aerospace. We raise our 6-month P/E-, EV/EBITDA-, and DCF-based price target to $11 from $8 (21% upside) as we roll our target price methodology forward and raise our estimates.”
Alcoa closed on Friday at $9.24.
Latest Ratings for AA
Date | Firm | Action | From | To |
---|---|---|---|---|
Jan 2021 | Morgan Stanley | Maintains | Equal-Weight | |
Dec 2020 | Morgan Stanley | Maintains | Equal-Weight | |
Nov 2020 | Morgan Stanley | Maintains | Equal-Weight |
View More Analyst Ratings for AA
View the Latest Analyst Ratings
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Posted-In: Goldman Sachs Sal TharaniAnalyst Color Upgrades Analyst Ratings