Alcoa Inc. (AA:US), the largest U.S. aluminum producer, rose the most in three months after JPMorgan Chase & Co. almost doubled its full-year earnings estimate amid expectations for tighter global supplies of the metal.
Alcoa rose 6.7 percent to $12.12 at 10:58 a.m. in New York, after earlier gaining as much as 7.6 percent, the most intraday since Oct. 22. The shares have increased 34 percent in the past year.
JPMorgan increased its 2014 estimate for Alcoa’s per-share earnings to 78 cents from 40 cents, raised its rating to the equivalent of buy from hold and lifted its 12-month price target to $15 a share from $9, according to a note today from New York-based analyst Michael Gambardella.
JPMorgan’s global commodities research team on Jan. 17 cut its estimate for this year’s primary aluminum supply surplus by 46 percent to 435,000 tons on expectations for reduced aluminum exports from China, according to the note.
To contact the reporter on this story: Christopher Donville in Vancouver at firstname.lastname@example.org
To contact the editor responsible for this story: Simon Casey at email@example.com