UBS cuts price target on Alcoa

UBS analyst Brian MacArthur has aggressively cut his price target on Alcoa Inc. (AA-N15.410.312.05%)ahead of the aluminum giant’s second-quarter results on July 11, citing - among other factors - higher raw material, maintenance and energy costs in upstream operations.

He’s forecasting earnings per share of 32 cents for the three-month period, above the 28 cents earned in the first quarter, but below consensus of 36 cents.

Mr. MacArthur also revised his earnings-per-share forecast for 2011 to $1.13 from $1.22, to reflect realized pricing, foreign exchange rates to date and rising costs. These rising costs in the industry also prompted him to temper his earnings expectations in 2012 and 2013.