September 18, 2012 at 07:52 AM EDT
Jeffries Sees Shares of Alcoa as Fully Valued in the Near Term, Prefers Freeport McMoran (AA, FCX)

New York city based aluminum giant Alcoa (AA) was downgraded this morning over at Jeffries & Co from Buy to Hold with a price target of $11.00.

The analyst at Jeffries is clearly more enthusiastic about Freeport McMoRam (FCX) citing, “We have said for some time that if/when Alcoa shares got an upside bump, we would be inclined to downgrade the stock. It did. We are downgrading. Within base metals, we strongly prefer the shares of FCX (FCX).

After Alcoa spent the summer oscillating in a tight range between between $8.00 and $9.00 it broke out recently and jumped to nearly $10. Currently sitting at $9.58 Jeffries target implies 14.8%.

The Bottom Line
Shares of Alcoa (AA) have a 1.25% dividend yield, based on last night’s closing stock price of $9.58. The stock has technical support in the $8.00-$8.50 price area. If the shares can firm up, we see overhead resistance around the $10.50-$11.00 price levels.

Alcoa (AA) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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