Aluminum producer Alcoa’s shares jumped 2.3% Monday during premarket trading after JPMorgan initiated coverage with an overweight rating. The firm’s price target of $54 implies shares rallying more than 49% from Friday’s close.
“Our view rests on a positive aluminum price outlook, given supply constraints and the commodity’s strong secular growth trends, which can help fund shareholder returns and future growth initiatives,” analyst Bill Peterson wrote in a Monday note. ”
This article was originally published by CNBC.