Shares of Alcoa Inc., the largest U.S. aluminum producer, rose the most in more than two months Tuesday, after JPMorgan Chase & Co. almost doubled its 2014 earnings estimate amid expectations for tighter global supplies of the metal.
The shares rose 6.8 percent to $12.13 at the close in New York, the most since Nov. 4. New York-based Alcoa has increased 32 percent in the past year.
JPMorgan increased its 2014 estimate for Alcoa’s per-share earnings to 78 cents from 40 cents, raised its rating to the equivalent of buy from hold and lifted its 12-month price target to $15 a share from $9, according to a note today from New York- based analyst Michael Gambardella.
JPMorgan’s global commodities research team on Jan. 17 cut its estimate for this year’s primary aluminum supply surplus by 46 percent to 435,000 tons on expectations for reduced aluminum exports from China, according to the note.
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