Price Target Lowered on Alcoa

Macquarie Equities Research is out with an investor note this morning lowering their stock price expectations for Alcoa (NYSE: AA) who just reported earnings yesterday, after the bell. The company’s EPS was in line with expectations, but revenues missed once again sparking some selling in the name. Alcoa is currently trading lower by 2.81% to $14.81.

Macquarie Equities Research analysts believe that Alcoa’s stock price will be continually “linked to aluminum price trends,” which have been squishy to say the least. The company seems to be doing everything they can to turn their operations around and bring costs down, but frankly they are a high cost producer in a low cost environment and that is never good. I don’t like the name and wouldn’t trade it either way as there are much better ways to play the global recovery, even in the aluminum space.

Macquarie has a $17 price target, lowered from $19.