Alcoa Corp (NYSE: AA) showed early strength on markets Tuesday after a major agency provided those shares with an upgrade.
Deutsche Bank upgraded Alcoa from Hold to Buy and raised the price target from $44.00 to $60.00.
Analyst Jorge Beristain says the upgrade follows an increase to aluminum chain commodity forecasts. The analyst believes a two-year 20% FCF yield should support an improved credit rating and support share repurchases as well as a dividend re-instatement in the medium term.
What’s more, Alcoa’s Executive Vice President and Chief Financial Officer William Oplinger will participate in a question-and-answer session at the Morgan Stanley 5th Annual Laguna Conference in Dana Point, Calif., on Wednesday.
“Since inventing the aluminum industry, and throughout our history,” to quote company literature, “our talented Alcoans have followed on with breakthrough innovations and best practices that have led to efficiency, safety, sustainability and stronger communities wherever we operate.”
There have been significant stock moves on the aluminum giant recently – including one in August. There was no significant news from the company to explain the move, but a report revealed that China's export of unwrought aluminum fell last month, from 460,000 metric tons in June to 440,000 metric tons in July.
Experts say this could be favorable for U.S producers such as Alcoa. It was just last month that the stock soared over 11% when it announced a solid second quarter earnings report and announced that it would be partially restarting a facility that it had closed.
Shares in Alcoa took flight $1.36, or 3.1%, to $44.96, aspiring near the peak of a 52-week trading range of $20.00 to $45.22.
