Sterne Agee Sees Fundamental Story Improving for Alcoa

In a report published Wednesday, Sterne Agee analyst Josh W. Sullivan reiterated a Buy rating and $18.00 price target on

. In the report, Sterne Agee noted, “Alcoa reported strong adjusted EPS results of $0.18 [excludes $0.06 of announced restructuring actions in commodity business] which beat street estimates of $0.12. In the quarter, Alcoa executed on curtailing its commodity cost structure and GRP continues to pick up automotive demand. However, we continue to believe aerospace is the next leg of the story as EP&S demonstrated with margins up 90 bsp sequentially. Net, net fundamentally Alcoa continues to improve and we would continue to be buyers.” Alcoa closed on Tuesday at $14.79.