Alcoa Downgraded by Deutsche Bank to “Sell” (AA)
Alcoa (NYSE:AA) was downgraded by stock analysts at Deutsche Bank from a “hold” rating to a “sell” rating in a report issued on Wednesday, TheFlyOnTheWall.com reports. They currently have a $5.50 price objective on the stock, down from their previous price objective of $9.00. Deutsche Bank’s target price would suggest a potential downside of 32.68% from the stock’s previous close.
The analysts wrote, “We downgrade Alcoa to Sell from Hold on the back of a deteriorating outlook for its Primary aluminum business. Our new Price Target of $5.5/share (from $9 previously) implies 32% downside from current levels. Our downgrade is primarily driven by DB’s lower medium-term aluminum price outlook (12-13% lower in 2014-15 to $0.82 and $0.88/lb, respectively), which cuts 2014E and 2015E EPS by over half. In this report we postulate that Alcoa should consider spinning off Primary to reduce its negative drag and maximize equity value.”
A number of other analysts have also recently weighed in on AA. Analysts at Merrill Lynch downgraded shares of Alcoa (NYSE:AA) from a “neutral” rating to an “underperform” rating in a research note to investors on Friday, August 16th. Separately, analysts at Bank of America Corp. downgraded shares of Alcoa (NYSE:AA) from a “neutral” rating to an “underperform” rating in a research note to investors on Friday, August 16th. They now have a $8.00 price target on the stock. Finally, analysts at Macquarie cut their price target on shares of Alcoa (NYSE:AA) from $6.00 to $5.00 in a research note to investors on Tuesday, July 16th. They now have a “sell” rating on the stock. Six research analysts have rated the stock with a sell rating, eight have issued a hold rating and two have issued a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus target price of $8.38.
Alcoa (NYSE:AA) traded down 1.96% on Wednesday, hitting $8.01. 24,716,750 shares of the company’s stock traded hands. Alcoa has a 52-week low of $7.63 and a 52-week high of $9.37. The stock has a 50-day moving average of $8.08 and a 200-day moving average of $8.20. The company has a market cap of $8.567 billion and a P/E ratio of 68.66.
The company also recently announced a quarterly dividend, which is scheduled for Monday, November 25th. Stockholders of record on Friday, November 8th will be paid a dividend of $0.03 per share. This represents a $0.12 annualized dividend and a dividend yield of 1.47%. The ex-dividend date is Wednesday, November 6th.
Alcoa Inc (NYSE:AA) is engaged in the production and management of primary aluminum, fabricated aluminum, and alumina combined, through its participation in technology, mining, refining, smelting, fabricating, and recycling.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.