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 $42.50, close to its 52-week low of $40.03.
Pipes commented:
“The U.S. sanctions on Rusal are likely to continue at least beyond the November elections, in our view, benefiting Alcoa’s (AA) near-term outlook on bullish alumina prices. Despite mixed headlines out of the Metals Bulletin international aluminum conference that suggested that sanctions relief could occur soon, we believe it is increasingly unlikely that sanctions on Rusal will be lifted before the October 23 deadline. As a reminder, companies must terminate business relationships with the 23, which has reportedly caused many aluminum and alumina customers to scramble for security of supply and Rusal to consider production cuts. Market pressure from Rusal sanctions combined with the Alunorte curtailment in Brazil have helped push alumina prices from $400/Mt in March to $630/MT today (+57.5%).”
According to TipRanks.com, Pipes is a 4-star analyst with an average return of 6.8% and a 61.5% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Novagold Resources Inc New, and Newmont Mining Corporation.
Currently, the analyst consensus on Alcoa Corp is a Strong Buy with an average price target of $60, which is a 41.2% upside from current levels. In a report issued on September 10, Credit Suisse also maintained a Buy rating on the stock with a $65 price target.
.
See today’s analyst top recommended stocks >>
Alcoa Corp’s market cap is currently $7.98B and has a P/E ratio of 58.08. The company has a Price to Book ratio of 1.59.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
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.
