UBS remains cautious on Alcoa following acquisition UBS said Alcoa's acquisition of Firth Rixon is a strategic positive and will be accretive after the first year, but they remain cautious given their outlook on aluminum premiums and the increased balance sheet leverage. The firm raised its price target on Alcoa to $15 from $13.50 but keeps its Neutral rating on the shares.
Alcoa rallies with Freeport-McMoRan, materials sector Shares are up over 5% to $9.33 at time of writing, putting it above downtrend resistance at the 10-day moving average. At that price next resistance is at $9.51. Support is at $9.19.