Key Highlights:
- Alcoa (AA, Financial) anticipates a $90 million quarterly impact from U.S. tariffs on Canadian aluminum.
- Analysts predict a 54.70% potential upside with a price target of $38.78.
- GuruFocus estimates suggest a 20.34% upside based on the GF Value calculation.
Alcoa Faces Tariff Challenges
Alcoa (AA) is bracing for a substantial $90 million hit this quarter due to U.S. tariffs on Canadian aluminum imports, currently set at 25%. Canadian aluminum plays a crucial role in Alcoa's supply chain, comprising about 70% of its shipments to the United States. This tariff adds to a $20 million cost incurred in the previous quarter, emphasizing the ongoing financial pressure on the company.
Analyst Price Predictions
The outlook from Wall Street analysts presents an optimistic scenario for Alcoa Corp (AA, Financial) shares. With insights from 9 analysts, the average price target stands at $38.78, with the highest forecast reaching $49.00 and the lowest at $26.00. This average price target suggests a remarkable upside potential of 54.70% from Alcoa's current trading price of $25.07. For further in-depth analysis, you can view more detailed estimates on the Alcoa Corp (AA) Forecast page.
Brokerage Recommendations
The consensus among 12 brokerage firms paints a positive picture, with Alcoa Corp (AA, Financial) receiving an average recommendation of 2.3, which translates to an "Outperform" status. This recommendation scale, ranging from 1 (Strong Buy) to 5 (Sell), indicates a favorable outlook among analysts.
GuruFocus GF Value Insights
According to GuruFocus estimates, Alcoa Corp's (AA, Financial) projected GF Value over the next year is $30.17. This projection indicates a potential upside of 20.34% from its current price of $25.07. The GF Value signifies a stock's fair trading value, calculated using historical trading multiples, past growth, and future performance estimates. Investors can explore further data on the Alcoa Corp (AA) Summary page.
As investors assess Alcoa's prospects amid tariff-related challenges, the company's ability to navigate these financial strains will be crucial in determining its future performance.
