ALCOA CORP: JEFFERIES LOWERS TARGET PRICE FROM $85 TO $82
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 hours ago
0mins
Should l Buy AA?
Source: moomoo
Company Announcement: Alcoa Corp has announced a reduction in its target price for its stock.
New Target Price: The new target price is set at $82, down from the previous $85.
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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: 70.380
Low
38.00
Averages
57.63
High
78.00
Current: 70.380
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.
Alcoa's Q1 Earnings Report and Aluminum Segment Outlook
- Aluminum Segment Outlook: The company anticipates a favorable impact of approximately $55 million in Q2 for the Aluminum segment, driven by increased shipments and the restart of the San Ciprián smelter in Spain, although this is partially offset by lower energy sales.
- Alumina Segment Challenges: Due to the ongoing Middle East conflict, Alcoa expects a negative impact of about $15 million in Q2 on the Alumina segment's adjusted core profit, primarily from rising energy prices and shipment delays.
- Q1 Financial Results: In Q1, Alcoa reported revenue of $3.193 billion, down from $3.369 billion a year ago and below the analyst estimate of $3.3 billion, with adjusted earnings per share at $1.40, significantly lower than $2.15 from the previous year, reflecting shipment delays and lower volumes.
- Market Sentiment Shift: Despite a flat close during regular trading, AA shares fell 3% in after-hours trading, while retail sentiment shifted from bearish to neutral, indicating increased investor attention on the company's future performance.
See More
Middle East Tensions Ease, Stock Futures Rise Slightly
- Blaize Contract Announcement: Blaize's shares surged 22% after announcing a contract worth up to $50 million with NeoTensr to co-develop AI edge data center infrastructure in the Asia-Pacific region, which is expected to generate significant revenue within the first year, highlighting strong demand for edge AI computing.
- Netflix Soft Guidance: Netflix's shares fell 10% despite beating Q1 expectations, as the FY2026 revenue outlook of $50.7 billion to $51.7 billion disappointed investors, coupled with a lower operating margin forecast of 31.5%, which is below the 32% expectations, contributing to a cautious sentiment among shareholders.
- Trevi Therapeutics Equity Offering: Trevi Therapeutics' shares declined 7% following the announcement of a $150 million underwritten equity offering, raising dilution concerns, with an additional $22.5 million greenshoe option, as the proceeds are intended to fund the development of its lead candidate, Haduvio, for chronic cough conditions.
- Alcoa Earnings Miss: Alcoa's shares dipped 3% after reporting Q1 EPS of $1.40 and revenue of $3.19 billion, both below consensus expectations, while the company maintained its 2026 production guidance but flagged near-term EBITDA headwinds, as it explores asset monetization opportunities including the sale of its Messina East smelter site for a data center project.
See More
ALCOA STOCK DROPS 3% IN PREMARKET TRADING FOLLOWING Q1 PROFIT AND REVENUE SHORTFALL
- ALCOA's Market Performance: ALCOA shares fell by 3% in pre-market trading following the release of their Q1 financial results.
- Financial Results Overview: The company reported a miss in both profit and revenue expectations for the first quarter.
See More
Alcoa in Talks to Sell Inactive Smelter for Data Center
- Asset Disposal Strategy: Alcoa is in advanced talks to sell its inactive Messina East smelter for a data center project, indicating the company's proactive approach to asset optimization and transformation.
- Financial Health Improvement: This divestiture is part of a broader effort by Alcoa to clean up its balance sheet and capitalize on the high demand for data center land, thereby enhancing the company's financial stability and market competitiveness.
- Management Confidence: During the latest earnings conference call, CEO William Oplinger noted that while a final valuation has not been disclosed, the project is progressing through necessary public review channels, reflecting management's confidence in the project's advancement.
- Progress on Other Assets: Oplinger also mentioned that similar
See More
ALCOA CORP: JEFFERIES LOWERS TARGET PRICE FROM $85 TO $82
Company Announcement: Alcoa Corp has announced a reduction in its target price for its stock.
New Target Price: The new target price is set at $82, down from the previous $85.
See More
Alcoa Corporation Q1 2026 Earnings Call Insights
- Strong Start: Alcoa reported a net income of $425 million in Q1 2026, significantly up from $213 million in the previous quarter, demonstrating the company's robust performance driven by rising aluminum prices and operational execution, despite risks from supply disruptions in the Middle East.
- Improved Financial Position: The company ended the quarter with a cash balance of $1.4 billion and adjusted net debt of $1.8 billion, although free cash flow was negative $298 million primarily due to seasonal working capital build, indicating a degree of flexibility in financial management.
- Outlook Adjustments: Interest expenses for the full year 2026 are expected to decrease slightly to $135 million, while estimates for environmental and ARO payments have increased to approximately $360 million, reflecting the company's strategic response to future cost pressures.
- Inventory Repositioning Impact: The inventory repositioning in Q1 deferred EBITDA recognition on 30,000 metric tons to Q2, with the alumina segment facing an unfavorable impact of $15 million, while the aluminum segment is expected to benefit by $55 million, showcasing proactive adjustments in product mix management.
See More
Alcoa's Q1 Earnings Report and Aluminum Segment Outlook
- Aluminum Segment Outlook: The company anticipates a favorable impact of approximately $55 million in Q2 for the Aluminum segment, driven by increased shipments and the restart of the San Ciprián smelter in Spain, although this is partially offset by lower energy sales.
- Alumina Segment Challenges: Due to the ongoing Middle East conflict, Alcoa expects a negative impact of about $15 million in Q2 on the Alumina segment's adjusted core profit, primarily from rising energy prices and shipment delays.
- Q1 Financial Results: In Q1, Alcoa reported revenue of $3.193 billion, down from $3.369 billion a year ago and below the analyst estimate of $3.3 billion, with adjusted earnings per share at $1.40, significantly lower than $2.15 from the previous year, reflecting shipment delays and lower volumes.
- Market Sentiment Shift: Despite a flat close during regular trading, AA shares fell 3% in after-hours trading, while retail sentiment shifted from bearish to neutral, indicating increased investor attention on the company's future performance.
See More
Middle East Tensions Ease, Stock Futures Rise Slightly
- Blaize Contract Announcement: Blaize's shares surged 22% after announcing a contract worth up to $50 million with NeoTensr to co-develop AI edge data center infrastructure in the Asia-Pacific region, which is expected to generate significant revenue within the first year, highlighting strong demand for edge AI computing.
- Netflix Soft Guidance: Netflix's shares fell 10% despite beating Q1 expectations, as the FY2026 revenue outlook of $50.7 billion to $51.7 billion disappointed investors, coupled with a lower operating margin forecast of 31.5%, which is below the 32% expectations, contributing to a cautious sentiment among shareholders.
- Trevi Therapeutics Equity Offering: Trevi Therapeutics' shares declined 7% following the announcement of a $150 million underwritten equity offering, raising dilution concerns, with an additional $22.5 million greenshoe option, as the proceeds are intended to fund the development of its lead candidate, Haduvio, for chronic cough conditions.
- Alcoa Earnings Miss: Alcoa's shares dipped 3% after reporting Q1 EPS of $1.40 and revenue of $3.19 billion, both below consensus expectations, while the company maintained its 2026 production guidance but flagged near-term EBITDA headwinds, as it explores asset monetization opportunities including the sale of its Messina East smelter site for a data center project.
See More
ALCOA STOCK DROPS 3% IN PREMARKET TRADING FOLLOWING Q1 PROFIT AND REVENUE SHORTFALL
- ALCOA's Market Performance: ALCOA shares fell by 3% in pre-market trading following the release of their Q1 financial results.
- Financial Results Overview: The company reported a miss in both profit and revenue expectations for the first quarter.
See More
Alcoa in Talks to Sell Inactive Smelter for Data Center
- Asset Disposal Strategy: Alcoa is in advanced talks to sell its inactive Messina East smelter for a data center project, indicating the company's proactive approach to asset optimization and transformation.
- Financial Health Improvement: This divestiture is part of a broader effort by Alcoa to clean up its balance sheet and capitalize on the high demand for data center land, thereby enhancing the company's financial stability and market competitiveness.
- Management Confidence: During the latest earnings conference call, CEO William Oplinger noted that while a final valuation has not been disclosed, the project is progressing through necessary public review channels, reflecting management's confidence in the project's advancement.
- Progress on Other Assets: Oplinger also mentioned that similar
See More
ALCOA CORP: JEFFERIES LOWERS TARGET PRICE FROM $85 TO $82
Company Announcement: Alcoa Corp has announced a reduction in its target price for its stock.
New Target Price: The new target price is set at $82, down from the previous $85.
See More
Alcoa Corporation Q1 2026 Earnings Call Insights
- Strong Start: Alcoa reported a net income of $425 million in Q1 2026, significantly up from $213 million in the previous quarter, demonstrating the company's robust performance driven by rising aluminum prices and operational execution, despite risks from supply disruptions in the Middle East.
- Improved Financial Position: The company ended the quarter with a cash balance of $1.4 billion and adjusted net debt of $1.8 billion, although free cash flow was negative $298 million primarily due to seasonal working capital build, indicating a degree of flexibility in financial management.
- Outlook Adjustments: Interest expenses for the full year 2026 are expected to decrease slightly to $135 million, while estimates for environmental and ARO payments have increased to approximately $360 million, reflecting the company's strategic response to future cost pressures.
- Inventory Repositioning Impact: The inventory repositioning in Q1 deferred EBITDA recognition on 30,000 metric tons to Q2, with the alumina segment facing an unfavorable impact of $15 million, while the aluminum segment is expected to benefit by $55 million, showcasing proactive adjustments in product mix management.
See More
