Credit Suisse upgrades to Outperform from Neutral believing the positive indicators are exceeding the negatives. Assets are performing and unit costs are down in the June quarter.
Commentary signalling the aluminium sector is turning the corner in Europe and North America suggests the rise in inventory outside of China may start to slow.
That said, the broker acknowledges the global outlook is uncertain and volatility is still expected. Target is raised to $2.00 from $1.65.
Sector: Materials.
Target price is $2.00.Current Price is $1.73. Difference: $0.27 – (brackets indicate current price is over target). If AWC meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
