Blue-chip company Alcoa (AA: sentiment, chart, options) was blessed with some early-morning analyst action this morning, with Goldman Sachs upgrading the shares to "buy" from "neutral." The broker also raised its price target on the equity to $50 from $46 indicating the analyst expects the stock to rally about 40% in the next year from Friday's closing price of $34.64. Goldman attributed the bullish revisions to power constraints and increased demand from China, which is expected to reduce aluminum surpluses and ultimately increase aluminum prices over the next few years. More specifically, the broker upped its 2008-2010 aluminum price predictions to $1.39, $1.60, and $1.45 a pound, compared to previous guidance of $1.30 and $1.25 a pound, respectively.

Right out of the gate, the Dow component has tacked on about 85 cents, or 2.4%, to hover near the $35.50 level. The stock is now attempting to reclaim support from its 20-day moving average, a trendline in which the shares haven't closed above since June 10.

So, could AA be vulnerable to further upgrades and/or price-target revisions? According to Zacks, half of the 12 ranking analysts rate the stock a "hold," while Thomson Financial reports that the average 12-month price target on the equity stands at $43.26 about $7 below Goldman's new target. Should other brokers follow suit, any positive analyst attention could place additional buying pressure on the shares.