- U.S. sanctions against Russia and aluminum producer Rusal - the world's largest aluminum smelting company outside of China - is good news for Alcoa (AA +1.2%), Goldman Sachs (NYSE:GS) analyst Matthew Korn says in Barron's.
- The sanctions could lead to "greater market frictions and higher aluminum prices," as the U.S. is not only prohibiting its own citizens from dealing with the sanctioned Russian companies but also has warned non-citizens that they could face secondary sanctions, meaning that other countries in Europe and elsewhere also will avoid the companies, Korn writes.
- Alcoa has the most direct positive exposure to higher aluminum prices, Korn believes, adding that the market will look to the effectiveness of the likes of Arconic (ARNC +0.2%), Constellium (CSTM +0.6%) and Kaiser Aluminum (KALU -0.4%) to pass through potentially "higher, more volatile input costs."
- Now read: Daily Insider Ratings Round Up 2/9/18: IPI, LGCY, CCUR, CHN, ARNC, SNAP, BH, ATNX
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