ARNC - Why Arconic Stock Jumped 16.5% at the Open on May 20
Shares of specialty parts maker Arconic (NYSE: ARNC) rose dramatically at the start of trading on Wall Street on May 20, gaining a heady 16.5% within 30 minutes of the open. Although it gave back some of that initial advance, by 11:30 a.m. the stock was still up by roughly 12%. The company itself didn't announce anything, but, according to The Fly, Credit Suisse had an opinion to offer about Arconic's future.
Credit Suisse analyst Curt Woodworth initiated coverage of Arconic with an outperform rating. The logic behind that call is pretty simple. Arconic is one of the world's premier suppliers of aluminum products to the auto sector. Although car makers have been shut down, they are starting to reopen for business. That, in turn, should mean an uptick in orders for Arconic. The analyst thinks the third quarter will be a key inflection point.
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