Alcoa’s Price Target, Estimates Cut at Deutsche Bank (AA)

Filed in alcoa, dividend, earnings, Gold, Gold Investment, shares by on May 11, 2010 0 Comments

Aluminum producer Alcoa Inc. ( AA ) saw its price target and earnings estimates lowered on Tuesday by analysts at Deutsche Bank. The firm slashed its price target on AA shares, which had closed at $12.59 on Monday, to $15.50 from $18. Deutsche maintained its “Hold” rating on the stock, however. Additionally, the analyst lowered its 2010 and 2011 EPS forecasts by 54% and 14%, respectively, to reflect essentially flat aluminum pricing, as well as lower volume estimates. Alcoa shares fell 24 cents, or -1.9%, in premarket trading Tuesday. The Bottom Line We had removed shares of AA from our “recommended” list July 2, 2008 when the stock traded at $32.11. The company has a dividend yield of .95%, based on last night’s closing stock price of $12.59. The stock has technical support in the $11 price area. If the shares can firm up, we see overhead resistance around the $14-$15 price levels. We are watching the shares closely, but would remain on the sidelines for now. Alcoa Inc. ( AA ) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Alcoa’s Price Target, Estimates Cut at Deutsche Bank (AA)

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