Bank of America has adjusted its price target for Alcoa (AA, Financial), reducing it to $25 from the previous $26, while maintaining an Underperform rating on the company's stock. This decision follows the release of Alcoa's first-quarter financial results.
Despite acknowledging that Alcoa is making efforts in the right direction, the bank points to several ongoing challenges the company is facing. Key obstacles include the current tariff landscape, declining prices for aluminum and alumina, and issues surrounding the restart of the high-cost San Ciprian smelter in Spain. Additionally, there are increasing input costs attributed to the tariff situation, contributing further to the company's challenges.
These factors collectively form a challenging environment for Alcoa as it navigates through these economic headwinds.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Alcoa Corp (AA, Financial) is $35.12 with a high estimate of $43.05 and a low estimate of $25.00. The average target implies an upside of 50.72% from the current price of $23.30. More detailed estimate data can be found on the Alcoa Corp (AA) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Alcoa Corp's (AA, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Alcoa Corp (AA, Financial) in one year is $29.12, suggesting a upside of 24.98% from the current price of $23.3. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Alcoa Corp (AA) Summary page.
