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Alcoa’s Price Target Cut at UBS on Lower Prices, Weak Economy (AA)

Aluminum producer Alcoa Inc. ( AA ) on Tuesday saw its price target lowered by analysts at UBS.

The firm maintained its "Neutral" rating on AA but cut its price target to $9.50. That new target suggests a smaller 11% upside to the stock's Monday closing price of $8.53.

UBS also cut its earnings estimates for the company, citing lower aluminum selling prices, negative effects from currency fluctuations, and an overall weak macroeconomic outlook.

Alcoa shares rose 14 cents, or +1.6%, in premarket trading Tuesday.

The Bottom Line

Shares of Alcoa ( AA ) have a 1.41% dividend yield, based on last night's closing stock price of $8.53. The stock has technical support in the $7.50 price area. If the shares can firm up, we see overhead resistance around the $10-$11 price levels.

Alcoa Inc. ( AA ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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