S&P Capital IQ Reiterates its BUY Rating on Alcoa, Target Price Reduced

October 13 00:00 2011

NEW YORK, October 13 (RainbowNewsLine.com) – Analyst Leo Larkin of S&P Capital IQ maintains his  BUY rating on the shares of Alcoa (NYSE: AA). Target price has been reduced from $20 to $13.

Analyst Leo Larkin, in a research note published yesterday, mentions that the company reported its Q3 EPS short of the estimates and the consensus due to margin erosion at its primary aluminum segment. However, sales were higher than expectations. The EPS estimates for 2011 and 2012 have been reduced from $1.20 to $0.81 and from $1.36 to $0.96 due to conservative expectations on sales and margins. The target price is reduced in order to reflect the concerns over global economic growth.