Arconic Stock Surges After J.P. Morgan Turns Bullish

Shares of Arconic Inc. surged 2.6% in premarket trade Monday, after the maker of aluminum products was upgraded at J.P. Morgan, citing improved valuation after the selloff in the wake of the Grenfell Tower fire. Analyst Seth Seifman raised his rating to outperform from neutral, but trimmed his stock price target to $28, which is 21% above Friday's closing price of $23.13, from $30. The stock had tumbled as much as 21% before bouncing slightly after the Grenfell Tower tragedy, amid reports the company produced the aluminum sheets and polyethylene which burned in the fire. "Grenfell Tower risk hard to assess, but probably manageable and perhaps ultimately zero," Seifman wrote in a note to clients. Despite the stock's recent selloff, it has soared 25% year to date, while the SPDR Materials Select Sector ETF has climbed 8.9% and the S&P 500 has gained 8.3%.

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