Boston, MA 07/16/2014 (wallstreetpr) – Alcoa Inc (NYSE:AA) received $17 per share price target from analysts at Zacks in the latest note to investors. The new price target suggests nearly 6 percent premium over the prevailing price of the stock. The analysts have Neutral recommendation on the stock.
Bullish analysts
Analysts at Zacks are not the only ones bullish on the stock of Alcoa. Analysts at ISI Group recently reiterated their Buy rating on the stock while analysts at TheStreet upgraded the stock of Alcoa from Hold to Buy in their latest note. Still, analysts at Macquarie raised their price target on the stock to $11 from $10.
The price target boost on the stock of Alcoa Inc (NYSE:AA) from Zacks came hot on the heels of a 10-year deal that the aluminum company signed with a subsidiary of United Technologies. The company agreed to a $1.1 billion deal to make jet engine parts based on aluminum for Pratt & Whitney.
The engine parts will mostly be fan blades that support fuel efficiency in jets. The fan blades are also expected to be designed to reduce weight.
Although Alcoa’s primary business involves mining and refining aluminum, poor prices of the company have seen it shifting focus away from aluminum production to making of auto and aerospace parts. The parts not only allow manufacturers of jets and vehicles to deliver machines support environment conservation through engine efficiency, but also help the players, especially in the auto industry, to comply with the regulatory requirement on fuel efficiency.
Aluminum in autos
Some of the prominent automakers that have shown interest in using aluminum in their new vehicles include Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM).
Aluminum is also likely to find widespread application in electric cars such as those manufactured by Tesla Motors Inc (NASDAQ:TSLA).
In order to boost its position in the aerospace components manufacturing, Alcoa Inc (NYSE:AA) announced $3 billion offer to purchase Firth Rixson, a British company best-known for jet engine parts.
