Alcoa Corp Downgraded by JPMorgan, Stock Drops
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 08 Jan 26
Source: PRnewswire
Alcoa Corp's stock fell by 5.39% and crossed below the 5-day SMA, reflecting investor concerns following a downgrade by JPMorgan.
The downgrade from neutral to underweight was driven by valuation concerns, with analyst Bill Peterson highlighting a 15% rise in Chinese aluminum inventories this month, which has weakened import demand. Despite a seemingly optimistic market environment, the high supply levels in Indonesia are expected to stagnate aluminum prices, increasing downside risks for Alcoa.
This downgrade underscores the challenges Alcoa faces in achieving its financial targets, particularly as the market remains cautious about the aluminum industry's outlook amid rising inventories and potential asset sale pressures.
Analyst Views on AA
Wall Street analysts forecast AA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AA is 46.00 USD with a low forecast of 33.00 USD and a high forecast of 58.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
6 Buy
2 Hold
2 Sell
Moderate Buy
Current: 60.640
Low
33.00
Averages
46.00
High
58.00
Current: 60.640
Low
33.00
Averages
46.00
High
58.00
About AA
Alcoa Corporation is a vertically integrated aluminum company comprised of bauxite mining, alumina refining, aluminum production (smelting and casting), and energy generation. The Company’s operations are comprised of two business segments: Alumina and Aluminum. The Alumina segment primarily consists of its bauxite mines and alumina refineries, which generally include the mining of bauxite and other aluminous ores, as well as the refining, production, and sale of smelter grade and non-metallurgical alumina. The alumina produced by this segment is sold to internal and external aluminum smelter customers; a portion of the alumina is sold to external customers who process it into industrial chemical products. The Aluminum segment consists of the Company’s aluminum smelting and casting operations along with the Company’s energy production assets in Brazil, Canada, and the United States. It has direct and indirect ownership of 26 operating locations across nine countries on six continents.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
