Alcoa reported an adjusted earnings loss for the December quarter of -US$0.31 per security. Net distributions to Alumina Ltd were US$74.4m.
UBS acknowledges its final base case dividend of US3.5c per share may be conservative and notes additional distributions appear necessary for the final dividend to reach the consensus forecast of US4.1c per share.
Sell rating and $2.10 target maintained.
Target price is $2.10.Current Price is $2.29. Difference: ($0.19) – (brackets indicate current price is over target). If AWC meets the UBS target it will return approximately -9% (excluding dividends, fees and charges – negative figures indicate an expected loss).