Alcoa -2% as Credit Suisse cuts to Neutral

|About: Alcoa Corporation (AA)|By:, SA News Editor

Alcoa (AA -2.4%) slides after Credit Suisse downgrades shares to Neutral from Outperform with a $31 price target, cut from $40, shifting its valuation framework to focus on "owned" EBITDA and free cash flow on a blended 2019-20 basis to account for the shifting fortunes between refining and smelting.

Credit Suisse analyst Curt Woodworth also says China is set to accelerate supply growth over the next several years as capacity swaps convert to new smelters and provincial focus pivots to growth model.

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