Dahlman Rose upgrades Alcoa and Reliance Steel

Dahlman Rose is upgrading Alcoa and Reliance Steel and Aluminum to Buy from Hold. Dahlman also initiates a PT of USD 22 and USD 63 respectively.

Dahlman believes that improvements in its downstream business, coupled with an improving price environment auger well for the outlook for Alcoa shares, over the medium term, Dahlman also anticipates improved profitability in the company's alumina business.

Dahlman views Reliance as a low-risk vehicle to participate in the continued improvement in the domestic steel market. With leading indicators pointing towards an improved construction market in 9 - 12 months, it anticipates that results for the company should continue to improve through 2012.

Given Dahlman Rose's positive outlook on the global economy it anticipates that aluminum, copper, iron ore, molybdenum and steel prices will continue to trend higher.

（Sourced from www.benzinga.com）