Alcoa shares rose after analyst saw cost cutting progress inside it first-quarter loss.

The largest U.S. aluminum producer yesterday reported a $497 million net loss, capping its first back-to-back quarterly losses since the three months ended in March 1994. In the midst of this loss, however shares bounced back as analysts sifted through the earnings report on Wednesday.

Analyst H. Fraser Phillips of RBC Capital Markets said that recent financing and additional cost reductions have reduced the pressure on Alcoa's balance sheet and shares have responded positively.

”Cost reductions to date are positive but much hard work remains, he said.

Aluminum prices will continue to be weighed by significant excess inventory and capacity, Phillips added, as he set his price target of $12.

Jorge Beristain of Deutsche Bank maintained his price target of $8 and his Hold rating.

While, BMO cut its price target to $7 from $8, based on commodity price assumptions as Alcoa faces seven quarters of losses.

UBS also raised Alcoa's share price target to $8.25 from $7.25, saying that results in Alcoa's Engineered Products business were better than expected and that the company expects to achieve additional cost savings by the end of the year.

Shares of Alcoa rose 2 cents to $ 0.26% at $7.81 in the early trading Wednesday.

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