JPMorgan (NYSE:JPM) Boosts Alcoa's (NYSE:AA) PT, EPS Estimate

After Alcoa (NYSE:AA) reported earnings which beat expectations, JPMorgan (NYSE:JPM) gave their take on the strategy of the company and its impact going forward.

JPMorgan says, "We think AA's strategy of exiting underperforming businesses, focusing on low-cost operations, and attacking its cost structure are all starting to increase the company's leverage to the underlying aluminum price. We expect earnings to gradually increase throughout this year, as these efforts continue to pay off amidst strong aluminum prices, and think the stock could benefit from some multiple expansion as investors become more convinced of their sustainability and ability to drive earnings higher."

JPMorgan raised their 2011 EPS estimate from $1.30 to $1.55. They see aluminum prices increasing from $1.06 a pound to $1.10 a pound for 2011.

JPMorgan maintained an "Overweight" rating on Alcoa Inc., which was trading at $16.27, down $0.22, or 1.30 percent. They increased their price target on Alcoa from $20 to $22.