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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuKaiser Aluminum has pulled back as of late, and investors should take advantage by scooping up its shares, according to UBS. The investment bank upgraded the aluminum producer to buy from neutral. It also hiked its price target on shares to $184 from $179, implying nearly 18% upside from Friday’s close. “The selloff provides investors attractive entry into a business with improving earnings power,” analyst Alex Stansbury said Monday in a note to clients. Shares of Kaiser Aluminum gained nearly 3% in Monday’s session, but it has fallen 13% over the past three months, largely due to trade-related headwinds and a leadership shakeup at the firm. The stock was last trading roughly about 20% off its 52-week high of $199.89 hit on Aug. 12. KALU 3M mountain Shares are down 14% over the past three months. However, shares could soon rise again due to aluminum industry tailwinds, according to UBS. In addition, Kaiser Aluminum is likely to see its underlying fundamentals continue to strengthen, driving more value to its shares, per the investment bank. “While scrap remains a meaningful tailwind, underlying fundamentals are strengthening … we see continued benefits from investments at Warrick/Trentwood, alongside the end of aero destocking with build rates accelerating,” Stansbury wrote. UBS’ call falls in line with consensus on Wall Street. Of the four analysts covering Kaiser Aluminum, two have an underperform on the stock, while one has a buy rating and another put a hold on it, LSEG data shows.Read More