UBS analyst: Alcoa will become the acquisition target

After Rio Tinto acquired Alcan, the industry turned its attention to Alcoa.

In May, UBS analyst brian Macarthur said that the value of Alcoa's "partial sum" has risen to $56/share. “However, we noticed that there are some obstacles in the multiple transactions that have to be carried out, and these values ​​must be reflected in the overcoming of these obstacles.” He reminded customers on Tuesday that “in addition, if the stalemate is finally broken, each pen The actual value of the transaction may change."

However, he raised the target price of Alcoa from $46 per share to $55 per share. He increased the price-earnings P/E ratio from 12x to 14x. He also said that 14 times is still below historical levels and below the price-earnings ratio of Rio Tinto's acquisition of Alcan.

UBS said the outlook for the aluminum market remains positive and expects aluminum prices in 2007 and 2008 to be $1.28/lb and $1.40/lb, respectively.


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