Citi downgrades Australia's Alumina to neutral on falling prices

Alumina

29/11/2022 24:44

** Citi downgrades Australia's Alumina Ltd  AWC.AX  to
"neutral" and keeps PT unchanged at A$1.60
    ** Brokerage says rating downgraded due to alumina prices
moving lower on higher Chinese production and reduced imports
from the western world 
    ** Citi says it had previously upgraded AWC on a valuation
call with an expectation that alumina prices would stabilise and
lift modestly 
    ** Brokerage says it does not see investors paying up in a
slowing global economy for co's CY24 estimated profit potential 
    ** Brokerage makes no changes to forecasts but flags risks
to Q4 alumina price assumption of $335 per tonne 
    ** AWC is down about 2% at A$1.49  
    ** Five of 10 analysts rate the stock "buy" or higher, two
"hold" and three "sell"; their median PT is A$1.70 – Refinitiv
data
    ** Stock has fallen 18.5% this year, as of last close
 (Reporting by Nausheen Thusoo)
 ((Nausheen.Thusoo@thomsonreuters.com;))