Morgan Stanley Focuses on End Market Outlook for Alcoa

In a report published Tuesday, Morgan Stanley analyst Paretosh Misra reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “Alcoa's GRP & EPS segments are very well positioned to capitalize on emerging trends in global aerospace & automotive markets. Improvement in upstream margins to last 10-year average could increase annual earnings to above $1 per share and benefit shares, but the timing of recovery in upstream remains uncertain. (MS Commodity team forecasts aluminum prices below $0.90/lb for 2014-16). Bull case upside risk (bauxite market tightens, higher premiums than our base case, further multiple expansion on auto body sheet growth opportunities & aerospace exposure) leaves us EW.” Alcoa closed on Monday at $12.87.