Morgan Stanley analyst Piyush Sood remains constructive on Alcoa as he believes aluminum and alumina prices be supported by China's winter cuts, operations should improve on lower maintenance headwinds and smelter restarts and he thinks the company will initiate a dividend within about 3 months. He sees last week's roughly 20% selloff as investors reacted to the Q2 EBITDA miss and larger than expected FY18 guidance cut as an opportunity to buy shares at an attractive entry point, Sood tells investors. He lowered his price target to $57 from $60 to factor in updated guidance but maintains an Overweight rating on Alcoa shares.