New leadership at Arconic could bring growth, analyst says
Investors believe new leadership will help Arconic (NYSE: ARNC) capitalize its cost-cutting efforts, said Jorge Beristain, managing director and head of America's metals and mining equity research at Deutsche Bank, on CNBC's " Power Lunch " on Monday.
Beristain said activist investor Elliott Management will help Arconic realize its earnings potential by championing its own CEO to the helm, after the metal products manufacturer's former CEO Klaus Kleinfeld quit amid a proxy battle with the investing firm.
"The fact he's stepping down one full month ahead of schedule pretty much clears the way for the slate that Elliott is nominating," Beristain said.
Elliott has nominated 5 people to Arconic's board and favors Larry Lawson, former CEO of Spirit AeroSystems (NYSE: SPR), to become Arconic's next CEO.
Beristain said Lawson "comes from a background of delivering results, and I think that's largely related to the rally that Arconic has had year to date. [It] has really been driven by the activism of Elliott."
Arconic stock is up 43 percent year to date and traded as much as 9 percent higher following Kleinfeld's resignation.
The stock closed more than 3 percent higher Monday.
Watch: Arconic CEO ousted
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