Why Alcoa (AA) Stock Hit a One-Year High Today

NEW YORK (TheStreet) -- Alcoa  (AA) rose to a one-year high of $12.97 on Monday after the company announced its plan to trim 147,000 metric tons of aluminum smelting capacity in Brazil.

Furthermore, Sterne Agee set a "buy" rating on Alcoa and surpassed other analysts with a target price of $15 on the stock. The firm noted a new mining investment group led by former Xstrata CEO Mick Davis has raised $3.75 billion to acquire existing mining operations and turn his X2 Resources into a mining company.

Sterne Agee notes the possibility that this group could pursue aluminum assets, but Davis' move could indicate growing interest in a maturing cycle.

Alcoa also announced it would cancel its plans to open a new 750,000-ton smelter.

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Separately, TheStreet Ratings team rates ALCOA INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate ALCOA INC (AA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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