Aluminum producer Alcoa Inc. (AA) on Monday saw its rating, price target, and earnings estimates all boosted by analysts at Goldman Sachs.
The firm said it upgraded AA from “Neutral” to “Buy” and raised its six-month price target from $17 to $22. That new target implies a 29% upside to the stock’s Friday closing price of $17.
A Goldman analyst commented, “We view the structural industry change, driven by the de-linking of alumina from the aluminum price, as a potential major long-term contributor to Alcoa, which is the largest global third-party alumina seller.”
Accordingly, the firm lifted its 2011 and 2012 EPS estimates for AA to $1.40 and $1.65, respectively, up from $1.10 and $1.25.
Alcoa shares rose 38 cents, or +2.2%, in premarket trading Monday.
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