We are upgrading Alcoa to overweight from neutral and raising our 2006 EPS estimate to 2.15 from 1.88 because the market seems to be ignoring the strong aluminum price and the impact it will have on Alcoa's earnings and cash flow in 2006.
Quotes about alcoas (2 Quotes)
We believe that Alcoa's earnings will begin to reflect the strong aluminum price beginning with its 1Q 2006 earnings - particularly since several of the headwinds that affected Alcoa over the last two years, whether it be input costs or foreign currency, have stabilized.