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Alcoa (AA) Stock Climbs on Proposed Split

NEW YORK (TheStreet) -- Shares of Alcoa (AA - Get Report) are up by 1.25% to $9.70 on Tuesday morning, following an analyst note regarding the company's proposed split into two companies.

"In our initiation of Alcoa in March of 2014, we advocated for the very strategic direction the company is now taking with splitting the value added business and Upstream portfolio. In that time, while the Aerospace/Automotive focused segments have accelerated, the environment for the Upstream commoditized portfolio has deteriorated," Josh Sullivan of Sterne Agee wrote.

"We believe the announced split will achieve the long-term goal of unlocking significant value; however, we remain on the sidelines in the near term as the capital structure of the entities is established and the upstream business stabilizes...," Sullivan said, according to Barron's.

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On Monday, the company announced plans to separate its mining, refining and smelting businesses from its...


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