Jefferies analyst Christopher LaFemina downgraded Alcoa to Hold from Buy and lowered his price target for the shares to $23 from $29. The stock in after-hours trading is down 21c to $23.20. The shares are inexpensive on some metrics following yesterday’s Q2 results, but that alone is not reason enough to buy them, LaFemina tells investors in a research note after Thursday’s closing bell. The company is not generating free cash flow, not returning large-scale capital to shareholders, and is leveraged to commodities with relatively poor fundamentals, contends the analyst. As such, he sees a lack of positive catalysts for the shares.
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