Alcoa upgraded to buy; FBR sees value, takeout possibility

Friedman, Billings, Ramsey & Co. upgraded shares in Alcoa, Inc.to outperform from market perform Thursday, saying the recent sell-off in the aluminum producer's stock price "has completely removed any takeover premium in the name and provides upside potential" even if it's not bought out. Analyst Amir Arif kept his price target at $49 and said "there is a good probability of a takeout." Alcoa shares had gained 17% from May 7, when it unveiled a hostile bid for rival producer Alcan, Inc., to July 12, when it withdrew its proposal after Alcan accepted a higher offer from Rio Tinto plc. . Alcoa's entry into the mergers arena fueled speculation the New York company would itself soon be bought out by a global mining company. Shares Thursday fell 1.3% to $36.62.