AA, CENX, or NHYDY: Which Stock Analysts Are Bullish On




Previously, we’ve seen how analysts are rating different copper producers. In this article, we’ll see which aluminum stock analysts are bullish on. Notably, aluminum (RIO) has outperformed some of the other base metals in 2017 amid expectations of supply-side reforms in China.

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Target price

According to consensus estimates compiled by Thomson Reuters, Alcoa (AA) has a mean one-year price target of $42.73, representing a 28.4% upside from its closing price on May 26, 2017. In contrast, Century Aluminum (CENX) is trading 4.7% above its consensus price target. Norsk Hydro’s (NHYDY) target price implies a 14.1% upside over its May 26, 2017, closing prices.


The consensus view seems to be bullish for Alcoa. Of the 13 analysts surveyed by Thomson Reuters, three analysts have a “strong buy” rating on Alcoa while seven analysts have given the stock a “buy” rating. The remaining three analysts recommended the stock as a “hold.” None of the analysts recommended Alcoa as a “sell.”

In contrast, 25% of analysts rated by Thomson Reuters rate Century Aluminum’s stock as a “sell” while the remaining 75% have given it a “hold” rating. None of the analysts polled by Thomson Reuters have a “buy” rating on Century Aluminum.

Norsk Hydro has received a “buy” or equivalent rating from 54% of analysts polled by Thomson Reuters while the remaining analysts have a “hold” rating on the stock. None of the analysts have a “sell” recommendation for Norsk Hydro.

Steel stocks saw a significant rerating after their 1Q17 earnings release. In the next part of this series, we’ll see how analysts are rating steel stocks (XLB).


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