By Christiana Sciaudone
Investing.com — Alcoa (NYSE:) jumped to its highest in about three years after Deutsche Bank (DE:) upgraded the stock and set a Street-high price target.
Shares were bumped to buy from hold, and the price target to $36 from $22 by analyst Chris Terry on an improving outlook and free cash flow, StreetInsider said. Shares rose about 2.5%.
“A focus on cost management over several years has placed the company in a good position for when aluminum prices improve, which is now occurring,” the analyst wrote in a note. Deutsche Bank updated its first quarter forecast, expecting earnings to be 6% higher than previous forecasts and 3% above consensus.
Early this month, Goldman Sachs (NYSE:) boosted Alcoa to buy from sell, and the price target to $32 from $19, according to Street Insider. Analyst Emily Chieng wrote that from the firm are significantly higher than Bloomberg consensus, alleviating concerns about free cash flow and high costs. In the past month, Citi and Jefferies (NYSE:) both upped their price targets on the stock.
Alcoa returned to profit last quarter for the first time since the end of 2018, according to data compiled by Investing.com. It should report its highest earnings per share since then when it reports first quarter results next month.
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