South32 investors should back Alcoa asset sale, says Morningstar

** Morningstar recommends South32 S32.AX shareholders to vote in favour of the miner's proposed sale of its bauxite, alumina and aluminium assets, excluding Mozal Aluminum, to Alcoa at the company's AGM on October 15

** Says transaction values the assets moderately above its valuation and notes they account for about 35% of its fair value estimate for South32

** Investment research firm adds South32 will likely also sell Mozal Aluminum, which is on care and maintenance after failing to secure a new power agreement

** Morningstar retains fair value estimate at A$4.10 on South32

** Eight of 15 analysts rate the stock "buy" or higher, seven "hold"; their median PT is A$5.01, according to data compiled by LSEG

** Stock up 41% YTD, as of last close