Alcoa Inc. was upgraded by Goldman Sachs to a "Buy" rating on Monday, May 2nd and is trading up 2% since this morning. Goldman Sachs also increased their outlook for Alcoa from a 6 month price target of $17 to a new price target of $22. A Goldman analyst said, “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.”
In response, Alcoa Inc. adjusted their 2011 and 2012 EPS from $1.10 and $1.25 respectively, to $1.40 and $1.65.
Jeremy Pellizzari, Junior Analyst