(Reuters) - Alcoa Inc (AA.N) shares dropped nearly 3 percent on Tuesday on analysts’ negative outlooks despite the aluminum producer’s higher-than-expected quarterly results.
In morning trading on the New York Stock Exchange, the stock was 2.9 percent lower at $8.51 -- the biggest percentage decline on the Dow Jones industrial average .DJI.
On Monday, Alcoa reported a second-quarter operating profit of $61 million, or 6 cents per share, on revenue of $6 billion. On that basis it beat analysts’ estimates of 5 cents per share in earnings and $5.8 billion in revenue.
However, Dahlman Rose & Co analyst Tony Rizzuto lowered his stock-price target for Alcoa to $13 from $14.65 to reflect lower expected aluminum prices next year.
“Though management has implemented meaningful productivity gains, a difficult pricing environment and uncertainty surrounding possible litigation should continue to pressure the shares,” he wrote in a research note.
Curt Woodworth of Nomura kept his “neutral” rating for the stock. “It is hard to paint a bullish near-term picture for Alcoa,” he wrote.
Reporting by Steve James in New York; Editing by Lisa Von Ahn