Goldman Sachs Raises AA Estimates

Goldman Sachs is raising its 1Q2011 estimate for Alcoa, Inc. AA to $0.28 from $0.25 due to the mark-to-market of aluminum prices.

“The 15-day lagged average aluminum price for 1Q2011 came at $1.12/lb versus our $1.04/lb estimate (8% higher),” Goldman Sachs writes. “We also raise our 2Q2011 aluminum price forecast to $1.12/lb from $1.06/lb.

“However, the higher aluminum price is offset by higher cost assumptions, mainly due to rising prices for caustic and coke; thus our 2Q2011 EPS estimate remains unchanged. The higher 1Q estimate raises our FY2011 estimate to $1.03 from $1.00. There is no change to our 2012/2013/normalized estimates of $1.25/$1.40/$1.55 respectively.”

Alcoa closed Wednesday at $15.66.