Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Markets & Finance

Prudential Upgrades Alcoa to 'Buy'

Prudential upgraded Alcoa (AA) to buy.

Analyst John Tumazos says the company's Jan. 4 announcement of $750 million to $1 billion in asset sales to divest $1.3 billion in revenue signifies that corporate size is not a target; that management sees the benefits of a stronger balance sheet, and that large acquisition risks have diminished. Tumazos notes aluminum markets no longer appear to be deteriorating owing to a weaker dollar, Asian demand growth, U.S. demand rebounds, minor operating outages, and some indefinite outages.

Tumazos believes a bottom is past. He says shares have fallen to 15 times his $1.28 2004 earnings per share estimate, suggesting a 30% upside potential to his $26 target. He believes the risk-reward ratio has improved.

blog comments powered by Disqus