Alcoa: Jefferies no longer on 'buy'
(CercleFinance.com) - Analyst Jefferies reviews its recommendation on the Alcoa share downwards, going from 'buy' to 'neutral', having reduced its forecasts concerning the group.
“Our view at the time [...] was that the company would generate $2B of cash flow through 2019 but including our 3Q and 4Q19 projections, we now have [it] generating negative cash flow of $831M, which very much changes the story. We cut EPS for 2020 and 2021 and struggle to see a path to consistent cash flow generation and a stable and sustainable capital returns program”, regrets the analyst.
Jefferies sets the price target at 23 dollars.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
“Our view at the time [...] was that the company would generate $2B of cash flow through 2019 but including our 3Q and 4Q19 projections, we now have [it] generating negative cash flow of $831M, which very much changes the story. We cut EPS for 2020 and 2021 and struggle to see a path to consistent cash flow generation and a stable and sustainable capital returns program”, regrets the analyst.
Jefferies sets the price target at 23 dollars.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.