Deutsche Bank Upgrades Alcoa To Buy On The Back Of Upstream Turn-Around; Raises PT To $20


In a research report issued today, Deutsche Bank analyst Jorge Beristain upgraded shares of Alcoa (NYSE:AA) to Buy from Hold and raised his price target to $20, following better-than-expected 3Q14 results and incorporating pending $3bn Firth Rixon acquisition (anti-trust approval cleared/expected to close by YE14).

Beristain wrote, “We admittedly are now “eating crow”, as we had misjudged the turn-around now apparent in Alcoa’s upstream Primary smelting business due to (still rising) US premia plus an improved global aluminum price. The net effect has been a resurrection of a business unit that had heretofore been a headwind for Alcoa’s overall finances. Overall, our 2014-16E EBITDA revised up 8-9% and we increase our PT to $20/sh.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jorge Beristain has a total average return of -7.2% and a 35.7% success rate. Beristain has a -17.1% average return when recommending AA, and is ranked #3201 out of 3347 analysts.