Shares of aluminum maker Alcoa Inc. (NYSE: AA) have jumped this morning after receiving an upgrade from Deutsche Bank, as well as a strong vote of confidence from television stock maven Jim Cramer.
As of 9:56 a.m. (EDT), Alcoa shares are up 4.43 percent.
Metals and mining analyst Jorge Beristain boosted his rating on Alcoa to “buy” from “hold,” citing a brighter outlook for the global aluminum market as well as a belief that Alcoa has turned the corner from an operational point of view.
Beristain hiked his 12-month price target to $22 from $14.
In addition, the host of CNBC’s “Mad Money” Jim Cramer recommended Alcoa as 2011’s “top stock.”
Alcoa shares, which currently trade at about $16.42 per share, have soared more than 60 percent since falling to 52-week lows below $10 last July.
Beristain said he thinks aluminum prices could start rising as Chinese aluminum producers scale back production. Also, the rise of aluminum exchange traded funds might also reduce inventory,
Alcoa's laggard status has piqued investor interest in the name as a possible comeback play for 2011, and given signs of operational stability, we don't disagree, Beristain wrote in his note.