B.Riley FBR Remains a Hold on Alcoa Inc

By Carrie Williams

In a report released today, Lucas Pipes from B.Riley FBR maintained a Hold rating on Alcoa Inc (NYSE: AA), with a price target of $47. The company’s shares opened today at $47.68.

Pipes said:

“We are updating our numbers for Alcoa Corporation (AA) ahead of the company’s 2Q18 earnings release on 4:10PM ET. Based on recent pricing trends in the aluminum industry, we are now modeling an average LME aluminum price for 2018 at $2,147/Mt (from 2,242/Mt) and higher alumina prices at $454/Mt. Our total adjusted EBITDA for 2018 has increased to $3,662M from $3,455M. We are decreasing our adjusted EBITDA estimate for 2Q to $956M, mostly due to adjustments in inventory/price lags. We will be listening closely to any new information on the company’s capital allocation strategy; particularly as it relates to the pay down of its pension and OPEB liability as well as its capital return philosophy.”

According to TipRanks.com, Pipes is a 4-star analyst with an average return of 7.0% and a 60.5% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Novagold Resources Inc New, and CONSOL Coal Resources LP.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Alcoa Inc with a $67.36 average price target.

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Alcoa Inc’s market cap is currently $8.84B and has a P/E ratio of 64.05. The company has a Price to Book ratio of 1.65.

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Alcoa Corp. engages in the production of bauxite, alumina and aluminum. The Bauxite business represents the company’ global bauxite mining operations. It is basic raw material input for its alumina refining process. This business contains various aluminum hydroxide minerals, the most important of which are gibbsite and boehmite.