Ratings on (AWC) (BTE) (CTL) (DF) (DNN) Upgraded

Ratings on Alumina Limited (NYSE: AWC), Baytex Energy Corp (NYSE: BTE), CenturyLink, Inc. (NYSE: CTL), Dean Foods Co (NYSE: DF) and Denison Mines Corp (NYSE: DNN) were upgraded by analysts.

RBS upgraded Alumina Limited (AWC) from a “hold” rating to a “buy” rating.

TD Newcrest upgraded Baytex Energy Corp (BTE) from a “hold” rating to a “buy” rating.

Raymond James (NYSE:RJF) upgraded CenturyLink, Inc. (CTL) from a “market perform” rating to an “outperform” rating.

Goldman Sachs (NYSE:GS) upgraded Dean Foods Co (DF) from a “neutral” rating to a “buy” rating.

TD Newcrest upgraded Denison Mines Corp (DNN) from a “reduce” rating to a “hold” rating.

Alcoa (AA) Would Benefit from Chinese Suspension of New Smelters

An article in the Shanghai Daily, citing the China Nonferrous Metals Industry Association, asserts the Chinese government may take action to halt the overcapacity in the aluminum industry by no longer approving of new smelters, a move that could help alumina giant Alcoa (NYSE:AA).

The report said China produced a little under 18 million tons of aluminum last year, which would represent approximately 85 percent of total capacity. Conflicting reports place the number close to about 60 percent. Whatever percentage is more accurate, it does represent overcapacity.

If smelters are no longer approved in China at this time, it would strengthen spot aluminum prices because of lower production in a annual market growth of 15 to 20 percent. That would boost margins and earnings assuming input costs don't rise too much.

Alcoa closed Wednesday at $16.55, falling $0.15, or 0.90 percent.

Alcoa (AA) Led by Higher Aluminum, Flat-Rolled Prices

Alcoa slightly beat first-quarter profit estimates by analysts on higher alumina prices, and going forward, expectations are the higher prices will also lead Alcoa to a solid second quarter.

Also helping Alcoa in the latest quarter was flat-rolled products, which resulted in the aluminum producer beat earnings estimates by 1 cent.

Looking to the second quarter, Chief Financial Officer Chuck Lane said the company will boost alumina production by 125,000 tons, and higher pricing should continue to contribute to Alcoa's profits.

Revenue from flat-rolled products jumped 17 percent in the quarter and revenue from alumina 7 percent. Operating income in the quarter soared 170 percent for flat-rolled products and 97 percent for alumina.

It appears Alcoa disappointed a lot of analysts and investors, who even though having had estimates beaten, didn't appear to be impressed at the overall guidance and performance of the company, which had given the impression of a possible blowout quarter.

Alcoa closed Monday at $17.77, down $0.15, or 0.84 percent. In after-hours trading they were down to $17.21, falling $0.56, or 3.15 percent.

Alcoa (NYSE:AA), Reliance Steel & Aluminum (NYSE:RS) Boosted by Dahlman Rose

Alcoa (NYSE:AA) and Reliance Steel & Aluminum (NYSE:RS) were both upgraded by Dahlman Rose Friday, boosting them both from "Hold" to "Buy."

Concerning Alcoa, Dahlman said they see the company's downstream business improving, along with a stronger aluminum price outlook. Also noted was the alumina business, which they see becoming more profitable in 2011.

For Reliance, they see them benefiting from the broader U.S. domestic steel market continuing to improve. The construction market is expected to start to move within an estimated 9 to 12 months, suggesting companies may start to spend on steel and other materials before that. That could help Reliance through 2012 if that's how it works out.

Along with the steel industry, Dahlman also likes iron ore, copper, aluminum and molybdenum going forward.

Alcoa was trading at $16.01, gaining $0.26, or 1.68 percent, as of 3:03 PM EST. Reliance Steel was trading at $53.24, up $0.12, or 0.23 percent.