BMO Capital Markets Forecasts Strong Price Appreciation for Alcoa (NYSE:AA) Stock

Key Points

• BMO Capital Markets has raised its price target for Alcoa (NYSE:AA) from $35.00 to $37.00, suggesting a potential upside of 4.23% from the current price.
• Multiple analysts have given Alcoa varying ratings, with HSBC setting a target price of $41.00 and a "buy" rating, while the consensus rating remains a "Hold" with a target of $41.96.
• Alcoa exceeded earnings expectations by reporting a loss of ($0.02) earnings per share against an estimate of (0.15), reflecting a revenue increase of 3.1% year-over-year.

Alcoa (NYSE:AA - Get Free Report) had its price objective lifted by equities research analysts at BMO Capital Markets from $35.00 to $37.00 in a report issued on Thursday,Benzinga reports. The brokerage presently has a "market perform" rating on the industrial products company's stock. BMO Capital Markets' target price indicates a potential upside of 4.23% from the company's current price.

Several other research firms have also issued reports on AA. HSBC increased their target price on Alcoa from $33.00 to $41.00 and gave the stock a "buy" rating in a research note on Friday, October 17th. JPMorgan Chase & Co. lifted their price objective on shares of Alcoa from $27.00 to $34.00 and gave the company a "neutral" rating in a report on Thursday, October 9th. B. Riley raised their price target on shares of Alcoa from $38.00 to $40.00 and gave the company a "buy" rating in a research report on Tuesday, September 23rd. Morgan Stanley upped their price objective on Alcoa from $38.00 to $42.50 and gave the stock an "overweight" rating in a research report on Wednesday, October 8th. Finally, Citigroup upgraded Alcoa to a "buy" rating and set a $42.00 price objective on the stock in a research note on Tuesday, July 8th. Seven analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $41.96.

Alcoa Stock Performance

Shares of AA stock opened at $35.50 on Thursday. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.97 and a current ratio of 1.65. The firm has a market cap of $9.19 billion, a P/E ratio of 9.27, a P/E/G ratio of 0.24 and a beta of 2.20. The firm's 50 day moving average price is $33.12 and its 200-day moving average price is $29.78. Alcoa has a one year low of $21.53 and a one year high of $47.77.

Alcoa (NYSE:AA - Get Free Report) last posted its earnings results on Wednesday, October 22nd. The industrial products company reported ($0.02) earnings per share for the quarter, beating the consensus estimate of ($0.15) by $0.13. Alcoa had a net margin of 7.86% and a return on equity of 19.18%. The firm had revenue of $3 billion during the quarter, compared to the consensus estimate of $3.03 billion. During the same quarter last year, the firm earned $0.57 EPS. The firm's revenue for the quarter was up 3.1% on a year-over-year basis. As a group, equities research analysts predict that Alcoa will post 4.43 EPS for the current year.

Hedge Funds Weigh In On Alcoa

Hedge funds have recently added to or reduced their stakes in the stock. KLP Kapitalforvaltning AS raised its holdings in Alcoa by 3.4% during the third quarter. KLP Kapitalforvaltning AS now owns 54,700 shares of the industrial products company's stock worth $1,799,000 after purchasing an additional 1,800 shares in the last quarter. D.A. Davidson & CO. grew its position in shares of Alcoa by 7.5% in the 3rd quarter. D.A. Davidson & CO. now owns 13,219 shares of the industrial products company's stock valued at $435,000 after buying an additional 922 shares during the last quarter. Fifth Third Wealth Advisors LLC acquired a new stake in Alcoa during the 3rd quarter worth $220,000. Merit Financial Group LLC acquired a new stake in Alcoa during the 3rd quarter worth $444,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al lifted its position in Alcoa by 63.6% in the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 45,000 shares of the industrial products company's stock valued at $1,480,000 after acquiring an additional 17,500 shares during the last quarter.

About Alcoa

Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and internationally. The company operates through two segments, Alumina and Aluminum. It engages in bauxite mining operations; and processes bauxite into alumina and sells it to customers who process it into industrial chemical products, as well as aluminum smelting and casting businesses.

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