Alcoa Shares Drop to 52-Week Low on Downgrade

CNBC reported that Alcoa shares plunged more than 7 percent to a 52-week low, after Deutsche Bank downgraded the biggest U.S. aluminum producer.

As quoted in the market news:

The downgrade came after prices for aluminum on the London Metals Exchange recently hit one-year lows below $2,150 per ton, down from peaks of over $2,800 in May, on fears that the West’s sovereign debt [cnbc explains] crisis could depress the world economy.

The bank cut Alcoa’s [AA 8.90 -0.67 (-7%) ] investment rating to “hold” from “buy” and lowered its stock price target to $14 from $20, saying it believes industrial metals will be hurt by the European debt crisis and a slowdown in emerging markets.

Click here to read the entire CNBC news