- Alcoa (NYSE:AA) is initiated with a Neutral rating at Cleveland Research, which has a favorable long-term view of the company while lacking confidence that current estimates had "fully discounted the downside risks associated with weaker aluminum price momentum” as well as excess global production in the face of slowing demand.
- The firm says Alcoa's 2015 EPS could come in below $1.00 if premiums do not stabilize in the LME and regional markets; the consensus estimate for 2015 EPS is $1.05.
- The analysts say the global aluminum industry appears to be entering a near-term net-oversupplied position and a "2-3 point sequential decline in the overall global demand growth environment."