It’s time to sell shares of Arconic , according to Goldman Sachs. Analyst Emily Chieng downgraded the aluminum products maker to sell from neutral, citing a weak European demand outlook. “Our view now reflects (1) a deferral of growth projects underpinned by both uncertain medium-term market dynamics and operational execution misses, (2) ongoing headwinds around European building and construction demand and contributions from growth projects delayed, underpinning risk to the 2025 EBITDA path and downside on our numbers to FactSet consensus estimates,” she said in a Tuesday note to clients. ARNC 1D mountain Arconic shares fall premarket Shares of Arconic this year have gained about 4.6% following a roughly 36% slump in 2022. Chieng trimmed the firm’s price target to $21 from $23 a share, representing more than 5% downside from Monday’s close. Shares fell about 4% premarket. Among her reasons for the sentiment shift, Chieng cited concerns that outstanding liabilities from the 2017 Grenfell Tower fire will weigh on shares until a resolution is reached on litigation cases in the United Kingdom. “While we do expect an improvement in EBITDA in 2024 (primarily on price/volume improvements, and aerospace and automotive recovery), we take a more conservative view on the EBITDA potential given the company’s recent track record of operational execution and uncertainty in the macroeconomic outlook, and do not see the company realizing its 2025 target,” she wrote. — CNBC’s Michael Bloom contributed reporting
