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Arconic (ARNC) - Get Free Report  shares rose by as much as 2% Monday after Cowen upgraded the stock to outperform from market perform.

Analyst Gautam Khanna also increased the stock's price target to $31 from $26.

"The firm's rising FCF renders its low valuation on EV/EBITDA, which was rooted in the firm's historically poor FCF/EBITDA, an artifact that no longer should apply," the analyst said in an Oct. 14 note.  

Khanna also wrote that "upside above our $31 PT is not a given, and will depend on whether operational gains & lower capex endure."

Arconic shares were last trading up 1.6%, or 43 cents, to $26.88. The stock is up about 26% over the past year.

Arconic, a lightweight metals manufacturer, has seven buys, five holds and one sell rating with an average $28 price target, according to Bloomberg.