Alcoa price target lowered to $50 from $55 at BMO Capital

BMO Capital analyst David Gagliano lowered the firm’s price target on Alcoa to $50 from $55 and keeps a Market Perform rating on the shares. The analyst cites the company’s lower than expected Q4 results while noting that its prior expectations for meaningful near-term cost improvements appear largely offset by bauxite-related mine plan approval delays. Aluminum prices have rallied but so have Alcoa shares, and an Enterprise Value to expected EBITDA multiple range of 5.3- to 5.7-times makes the stock "near fully valued", the analyst tells investors in a research note.