JPMorgan has revised its price target for Alcoa (AA, Financial), lowering it from $40 to $28. The firm maintains a Neutral rating on the shares as it anticipates Alcoa's performance in the upcoming Q1 earnings release for North American base metals. This adjustment reflects a broader reduction in December 2025 price targets by 20% across the sector.
The reassessment by JPMorgan is influenced by several factors, including a devaluation in market multiples and anticipated lower commodity prices. The ongoing uncertainty around tariffs and concerns about an evolving recession have further contributed to the cautious outlook. These elements are crucial in understanding the adjustments in price targets and ratings for companies like Alcoa within the metals sector.
