In a report released today, Lucas Pipes from B.Riley FBR maintained a Buy rating on Alcoa Corp (NYSE: AA), with a price target of $50. The company’s shares opened today at $38.61, close to its 52-week low of $35.13.
Pipes said:
“the close, Alcoa (AA) reported a 3Q beat with adjusted EBITDA of $795M compared with consensus estimates of $663M and our estimates of $718M. Compared with our estimates, the beat was predominately driven by stronger margins in the aluminum segment including larger contributions from the flat-rolled and energy segments which contributed $29M and $58M to EBITDA, respectively, versus $25M in the prior quarter. Aluminum costs came in as expected as lower conversion and alumina costs (compared with our estimates) were offset by higher power costs (versus our estimates). The lower-than-expected alumina costs were explained on the call as being driven by the timing of shipments.”
According to TipRanks.com, Pipes is a 4-star analyst with an average return of 5.2% and a 57.0% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Novagold Resources Inc New, and CONSOL Coal Resources LP.
Alcoa Corp has an analyst consensus of Strong Buy, with a price target consensus of $60.40, representing a 56.4% upside. In a report issued on October 9, Morgan Stanley also maintained a Buy rating on the stock with a $57 price target.
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Alcoa Corp’s market cap is currently $6.84B and has a P/E ratio of 49.81. The company has a Price to Book ratio of 1.36.
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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.
