NEW YORK (TheStreet) -- Shares of Alcoa (AA) - Get Report rose 3.77% to $16.22 in afternoon trading Friday after Goldman Sachs increased its third-quarter earnings per share estimate on the world's third-largest aluminum producer to 28 cents from 22 cents.
"We see the main driver for AA shares going into 2H14 to be the steady grind up in aluminum pricing, which is supported by further supply discipline in the global aluminum market," the firm wrote. "In 3Q, aluminum prices have increased about $200/t, which by our estimates, would contribute an additional $120mn (10 cents/sh) to the company's bottom line."
Goldman Sachs maintained its "buy" rating and its $20 price target on Alcoa.
Separately, TheStreet Ratings team rates ALCOA INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALCOA INC (AA) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, growth in earnings per share and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
- You can view the full analysis from the report here: AA Ratings Report