Alcoa (NYSE:AA) Rises on Deutsche (NYSE:DB) Upgrade, Worst is Past

Alcoa (NYSE:AA) has been struggling for some time on weak aluminum prices and demand, but Deutsche Bank (NYSE:DB) upgraded them today, citing more operational stability within the company and improved sentiment over aluminum pricing and demand.

Deutsche said, "Alcoa's laggard status has piqued investor interest in the name as a possible come-back play for 2011 and given signs of operational stability, we don't disagree.

"Investors have clearly been negative aluminum through 2010; however, our sense is that the 'worst' is already passed."

Everyone is optimistic on the first trading day of 2011, but the idea that there are legs under the alleged beginnings of a recovery are weak indeed, and the idea aluminum is poised for a comeback is more optimism than fact, and it remains to be seen if there is really a recovery in the manufacturing sector in 2011, which the cyclical Alcoa will depend on.

Deutsche upgraded Alcoa to a "Buy" today, which was trading at $15.95, up 0.56, or 3.64 percent, as of 2:19 PM EST. Deutsche raised their price target on Alcoa from $14 to $22.