Deutsche Bank says sell! “Deutsche Bank downgraded Alcoa from Hold to Sell and slashed its price target from $9 to $5.50 citing a deteriorating outlook on lower aluminum deck,” reports Street Insider.
“Our downgrade is primarily driven by DB’s lower medium-term aluminum price outlook (12-13% lower in 2014-15 to $0.82 and $0.88/lb, respectively), which cuts 2014E and 2015E EPS by over half,” analyst Jorge Beristain notes.
The cash price of primary Indian aluminum fell 1.6 percent on Tuesday, October 1, making it the day’s biggest mover. On the LME, the aluminum 3-month price inched up 0.8 percent to $1,849 per metric ton. On the LME, the primary aluminum cash price increased 0.8 percent to $1,803 per metric ton.
Chinese aluminum prices were flat for the day. The price of Chinese aluminum scrap remained steady. The price of Chinese aluminum billet held steady. The price of Chinese aluminum bar remained essentially flat. The Chinese aluminum cash price showed little movement on Tuesday.