Dahlman Rose Upgrades Alcoa and Reliance Steel & Aluminum

Dahlman Rose is upgrading Alcoa AA and Reliance Steel and Aluminum RS to Buy from Hold. Dahlman also initiates a PT of $22 and $63 respectively. Dahlman believes that improvements in its downstream business, coupled with an improving price environment auger well for the outlook for Alcoa shares, over the medium-term, Dahlman also anticipates improved profitability in the company's alumina business. Dahlman views Reliance as a low-risk vehicle to participate in the continued improvement in the domestic steel market. With leading indicators pointing towards an improved construction market in 9 - 12 months, it anticipates that results for the company should continue to improve through 2012. Given Dahlman Rose's positive outlook on the global economy it anticipates that aluminum, copper, iron ore, molybdenum and steel prices will continue to trend higher. AA is trading higher at $15.97 RS is trading higher at $53.55