Alcoa’s Price Target Cut by Goldman Sachs (AA)

Aluminum producer Alcoa Inc. (AA) saw its price target lowered on Wednesday by analysts at Goldman Sachs. The analyst lowered its rating for AA to $14, citing the company’s bottoming earnings and high aluminum inventory. Goldman currently rates the stock as a “Neutral.” Alcoa shares, which closed at $12.87 on Tuesday, edged slightly higher in premarket trading Wednesday. The Bottom Line We had removed shares of AA from our “recommended” list last July 2, when the stock traded at $32.11. The company has a dividend yield of .93%, based on last night’s closing stock price of $12.87. The stock has technical support in the $12 price area. If the shares can firm up, we see overhead resistance around the $15 price level. We are watching the shares closely, but would remain on the sidelines for now.