Alcoa Shares Down 2.1% As J.P. Morgan Cuts To Neutral

Alcoa Inc. shares slumped 2.1% in premarket trade Monday, after J.P. Morgan downgraded the stock to neutral from overweight on concerns about deteriorating fundamentals in aluminum and worry that U.S. premiums will start to track the slide seen of late in Europe. "While Alcoa's efforts over the past several years to reduce its costs in the upstream and grow its downstream should help to offset some of the these pressures, we think a neutral rating is warranted given the downside risk to stock given just how much aluminum premiums have increased over the past several years (U.S. premiums currently up more than 200% over levels seen at the beginning of 2012)," analysts wrote in a note. J.P. Morgan cut its price target on Alcoa stock to $18.50 from $20.00. Shares have gained 1.5% in the last three months, while the S&P 500 has gained 1.2%.