In a report released today, Lucas Pipes from B.Riley FBR reiterated a Buy rating on Alcoa Corp (NYSE: AA), with a price target of $50. The company’s shares opened today at $43.35, close to its 52-week low of $39.58.
“We are adjusting our estimates for Alcoa (AA – Aluminum (CENX – to reflect expected 3Q price realizations and our upgraded long-term price deck for both companies. For Alcoa, we lower our 2018 and 2019 adjusted EBITDA from $3,575M to $3,289M and from $3,628M to $3,218M. Underwriting our 2019 estimate is a realized aluminum sales price of $2,417/Mt (including regional premiums) and a realized alumina third-party sales price of $434/Mt. For Century Aluminum, we decrease our 2018 adjusted EBITDA from $123.3M to $100.8M and increase our 2019 adjusted EBITDA from $178.3M to $237.2M. Our 2019 Century estimates assume a realized sales price of $2,466/Mt (includes regional premiums) and alumina price of $441/Mt.”
According to TipRanks.com, Pipes is a 4-star analyst with an average return of 6.8% and a 59.3% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Newmont Mining Corporation, and Novagold Resources Inc New.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Alcoa Corp with a $61.56 average price target, implying a 42.0% upside from current levels. In a report issued on September 21, Berenberg Bank also initiated coverage with a Buy rating on the stock with a $54 price target.
The company has a one-year high of $62.35 and a one-year low of $39.58. Currently, Alcoa Corp has an average volume of 4.08M.
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Alcoa Corp. engages in the production of bauxite, alumina and aluminum. The Bauxite business represents the company’ global bauxite mining operations. It is basic raw material input for its alumina refining process. This business contains various aluminum hydroxide minerals, the most important of which are gibbsite and boehmite.