Goldman Sachs Lowers Estimates And Price Target On Alcoa (AA)

Goldman Sachs GS said in a client note yesterday that they are lowering their aluminum price forecasts and their estimates and price target for Alcoa AA. The firm lowered their aluminum forecasts by 8%-9% to $0.93 and $0.97 in 3Q10 and 4Q10, from $1.03 and $1.05, respectively. Goldman believes that in the near term macro environment, oversupply will suppress prices. Goldman (GS) also lowered their 2Q10 estimates for AA to $0.10 from $0.17. Third and fourth quarter earnings estimates go to $0.13 and $0.25 from $0.18 and $0.27, respectively. Full year fiscal 2010 EPS estimates have been lowered from $0.80 to $0.52. 2011 and 2012 estimates were also slashed to $1.05 from $1.25 and $1.20 from $1.50. As a result of the revisions, the analysts lowered their price target for Alcoa from $16 to $14. Goldman has a Neutral rating on the shares. During today's trading session, AA shares have fallen 1.11% to $11.59.