UBS Analyst Hikes Alcoa Price Target But Stays Cautious
In a research note released Thursday, UBS analyst Brian MacArthur maintained a Neutral rating on shares of Alcoa Inc. (AA), but raised his price target to $15.00 (from $13.50), following yesterday’s news that AA entered into a definitive agreement with Oak Hill Capital Partners to acquire Firth Rixson, a provider of seamless rolled rings, closed die forgings, open die forgings, extruded forgings and specialty metals to the aerospace and related markets.
MacArthur noted, “This transformative acquisition, the largest since 2000, makes strategic sense and enhances the aerospace position, however, we remain cautious on Alcoa given our outlook on aluminum premiums and the increased balance sheet leverage”.
According to TipRanks, which measures analysts and bloggers success rate based on how their calls perform, analyst Brian MacArthur currently has a one-year average return of 18.3% and a 76% success rate. MacArthur has a 0% average profit recommending AA, and he is ranked #393 out of 3135 analysts.