Alcoa (AA) PT Raised to $59 at Cowen

Cowen raised its price target on Alcoa (NYSE: AA) to $59.00 (from $51.00) while maintaining a Market Perform rating following Q4 results.

Analyst Novid Rassouli noted adjusted EBITDA was below views driven primarily by short-term operational challenges. Meanwhile, the alumina segment saw a sharp increase in q/q EBITDA due to spiking alumina prices. 2018 guidance of $2.6-2.8Bn comes in above consensus of ~$2.5Bn and implies shares are trading at an attractive valuation of just under 5x.

The firm updated FY18 EPS and EBITDA estimates to/from $3.74/$3.00 and $2,678MM/$2,212MM to account for changes in commodity prices and shipments. They are introducing FY19 EPS and EBITDA at $2.73 and $2,406MM.

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