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JPMorgan's Preference Shifts To Arconic In Base Metals; Downgrades Kaiser, Constellium

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  • JPMorgan analyst Michael Glick upgraded Arconic Corp (NYSE: ARNC) to Overweight from Neutral and raised the price target to 0 (an upside of 28%) from $35.

  • Glick notes the company offers exposure to both the auto and aerospace recoveries and the "strong" secular demand for aluminum can sheet.

  • The analyst says Arconic should have among the most leveraging to improvements in the automotive supply chain in his coverage.

  • The analyst downgraded Constellium SE (NYSE: CSTM) to Neutral from Overweight and lowered the price target to (an upside of 21%) from $22. In base metals, the analyst's preference shifts to Arconic.

  • Glick downgraded Kaiser Aluminum Corp. (NASDAQ: KALU) to Underweight from Neutral and lowered the price target to (an upside of 2.4%) from $117.

  • The analyst notes that the Warrick acquisition significantly reduces the company's exposure to more cyclical industries like aerospace and auto but could negatively impact Kaiser's trading multiple versus history.

  • Glick further adds that while Kaiser has a "clean" balance sheet, it produces relatively light free cash flow versus peers Arconic and Constellium.

  • Price Action: ARNC shares are trading higher by 4.76% at $31.26, KALU lower by 1.27% at $95.69, and CSTM lower by 1.41% at $17.41 on the last check Friday.

Latest Ratings for ARNC

Dec 2021

JP Morgan

Upgrades

Neutral

Overweight

Nov 2021

Wolfe Research

Initiates Coverage On

Outperform

Sep 2021

Goldman Sachs

Initiates Coverage On

Neutral

View More Analyst Ratings for ARNC
View the Latest Analyst Ratings

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