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

|By:, SA News Editor

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.