Alcoa (AA) is expected to release its 1Q17 financial results on April 24. Alcoa mainly saw sideways movement in the last few weeks. Although the stock is trading with decent year-to-date gains, it has lost 12.7% of its market capitalization since February 14, 2017. The slide in Alcoa stock coincides with Arconic’s (ARNC) stake sale in the company. In this part, we’ll see how analysts rate Alcoa before its 1Q17 earnings release.
Consensus price target
According to consensus estimates compiled by Thomson Reuters, Alcoa carries a mean one-year price target of $41.70—23.9% upside over its closing price on April 10, 2017. Of the 13 analysts surveyed by Thomson Reuters, ten analysts recommended Alcoa stock as a “buy” or some equivalent, while the remaining three analysts recommended the stock as a “hold.” None of the analysts recommended Alcoa as a “sell.” Among other aluminum producers (XLB), Norsk Hydro (NHYDY) and Century Aluminum (CENX) received a “sell” rating from 9% and 25% of the analysts, respectively.
On March 31, BMO upgraded Alcoa to “outperform” from “market perform.” BMO increased Alcoa’s target price from $35 to $45. On March 24, Berenberg raised Alcoa from “hold” to “buy” with a target price of $40.
Alcoa saw several upgrades after its 4Q16 earnings release. On February 2, 2017, J.P. Morgan upgraded Alcoa from “neutral” to “overweight.” It increased Alcoa’s target price from $29 to $46. On January 30, 2017, Morgan Stanley raised Alcoa’s price target from $37 to $40. Deutsche Bank also raised Alcoa’s price target from $30 to $32.5 after its 4Q16 earnings release.
In the next part, we’ll see how analysts rate Arconic.