Alcoa Upgraded to Buy by UBS Amid Supply Disruptions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2026
0mins
Source: seekingalpha
Alcoa Corp's stock rose by 3.39% and reached a 20-day high, reflecting positive market conditions.
UBS upgraded Alcoa's rating from Neutral to Buy and raised the price target from $75 to $80, anticipating that smelter outages due to the Middle East conflict will offset near-term demand risks, thereby supporting strong aluminum prices and premiums. Analyst Daniel Major expects over 3 million tons of supply disruption in the Middle East to significantly counteract lower alumina prices, leading to sustained increases in aluminum prices and premiums over the next year or two, regardless of when flows through the Strait of Hormuz resume.
This upgrade reflects a strong outlook for Alcoa, as the anticipated supply disruptions are likely to bolster aluminum prices, making the stock an attractive investment opportunity.
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Analyst Views on AA
Wall Street analysts forecast AA stock price to fall
8 Analyst Rating
2 Buy
4 Hold
2 Sell
Hold
Current: 77.640
Low
38.00
Averages
57.63
High
78.00
Current: 77.640
Low
38.00
Averages
57.63
High
78.00
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, and its operations 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 primarily 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 over 25 operating locations across eight countries.
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.
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- Emerging Coordination Mechanism: The G7 is discussing the establishment of a permanent secretariat to ensure the sustainability of critical mineral supply plans, aiming to mitigate the risks of over-investment through global coordination.
- Successful Case Studies: The Democratic Republic of Congo has successfully increased global prices by setting export quotas and stockpiling cobalt, but prolonged restrictions could lead to demand erosion, necessitating careful policy balance to maintain market stability.
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