Get Ready for Q3 Earnings Season, Alcoa Reports Thursday

Alcoa (NYSE:AA) kicks of Q3 2009 Earnings Season this coming Thursday (10/7) and the question on everyone's mind is -- will they blow it again?  But just yesterday an analyst went to bat for them and rated AA shares a 'Buy'.

 
Jorge Beristain from Deutsche Bank increased his rating on Alcoa (NYSE:AA) to "Buy" from "Hold" and increased his price target to $17 from $12. He also increased by an average 40% his price targets for all stocks he covers due to a more favorable view on base, bulk and precious metals over the medium term.

Deutsche Bank has raised its price projections for base metals for 2010 an average of 31 percent, but it reflects primarily mark-to-market accounting rules, on strong third-quarter "price surges," Beristain said in a client note.

"China's seemingly insatiable appetite for industrial raw materials has led to record high imports in many metals and a consequent tightening in market balances," he said.

However, metals will be hindered by a low recovery heading into 2010.

"We expect that the typical restocking associated with an up-cycle will be muted relative to previous cycles (due to) a function of consumer caution regarding future demand levels," Beristain said.

Alcoa is expected to announce revenues of $4.5 billion and a loss of 11 cents per share, if they under deliver, expect to see $10 a share.

SOURCES: http://www.forbes.com/feeds/ap/2009/10/01/business-materials-us-alcoa-an...