After J.P. Morgan and Goldman Sachs gave Alcoa Corp (NYSE: AA) a Buy rating last month, the company received another Buy, this time from B.Riley FBR. Analyst Lucas Pipes reiterated a Buy rating on Alcoa Corp today and set a price target of $49. The company’s shares opened today at $28.21, close to its 52-week low of $25.01.
Pipes noted:
“the close, Alcoa (AA) reported a 4Q beat with adjusted EBITDA of $749M compared to consensus $719M and our estimate of $723M. Compared to our estimates, the beat was predominately driven by stronger margins in the aluminum segment due to lower-than-expected production costs. In particular, conversion costs were better than we anticipated. The company also announced that it repurchased 1.7M shares for a total value of $50M. This leaves $150M left on the companies authorized repurchase program. In addition to reporting 4Q18 results, the company provided an update on 2019 guidance and its industry outlook for aluminum (deficit) and alumina (surplus even before Alunorte restart).”
According to TipRanks.com, Pipes is a 1-star analyst with an average return of -1.8% and a 43.1% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Covia Holdings Corporation, and Hallador Energy Company.
Currently, the analyst consensus on Alcoa Corp is a Strong Buy with an average price target of $45.90, a 62.7% upside from current levels. In a report issued on January 11, J.P. Morgan also maintained a Buy rating on the stock with a $57 price target.
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The company has a one-year high of $62.35 and a one-year low of $25.01. Currently, Alcoa Corp has an average volume of 3.6M.
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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.
