Seeking Alpha

Goldman ups Constellium, Alcoa as aluminum auto use a "game changer"

Believing several automotive platforms will move toward partial or full aluminum exposed body in the coming years - the Ford-150 is merely "the tip of the iceberg" - Goldman Sachs upgrades Constellium (CSTM) to Conviction Buy from Buy with a $35 price target from $27 and raises Alcoa's (AA) target to $15 from $12.

The firm sees the gradual conversion of automotive exposed body to aluminum as a "game changer for downstream aluminum use, with a growth rate higher than any other end market for specialty metals for the rest of this decade."

CSTM +2.3%, AA +1.4% premarket.

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Comments (2)
  • Philip Marlowe
    , contributor
    Comments (1369) | Send Message
    A good small cap bet on the increased use of aluminum in cars and trucks -- SHLO.
    11 Feb 2014, 11:01 AM Reply Like
  • jackmaster20
    , contributor
    Comments (806) | Send Message
    SHLO is a regional tier 2 has no scale to supply the
    Big 6 USA auto manufacturers
    KALU or CSTM are my favorites ......on a stock price drop, that is


    AA has too much mining or commodity price exposure (upstream ops)


    Which aluminum fab firm has the most EU and USA aerospace
    business ..? CSTM could also ride into the USA on its current
    EU business ties with both Mercedes & VW and others.
    22 Feb 2014, 03:56 PM Reply Like
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