Wells Fargo Upgrades Alcoa on Rising Aluminum Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy AA?
Source: CNBC
- Rating Upgrade: Wells Fargo analyst Timna Tanners upgraded Alcoa from equal weight to overweight, raising the price target from $67 to $70, which implies a 10.7% upside from Wednesday's close, reflecting confidence in the persistent strength of aluminum prices.
- Aluminum Price Surge: Aluminum futures have risen over 15.5% year-to-date and soared more than 50% in the past 12 months, primarily driven by the U.S.-Iran conflict, which has increased both prices and demand, indicating that the strength in the aluminum market may be underappreciated by investors.
- Asset Monetization Potential: The analyst highlighted that Alcoa is considering monetizing idle assets for data center conversion, with management noting several deals in progress, which could provide additional capital deployment opportunities and enhance profitability.
- Mixed Market Sentiment: Despite Wells Fargo's optimistic outlook, analyst opinions are divided; LSEG data shows that among 15 analysts covering Alcoa, 8 rate it as a buy or strong buy, while the remaining 7 assigned hold or underperform ratings, reflecting differing views on the stock's potential.
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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: 62.640
Low
38.00
Averages
57.63
High
78.00
Current: 62.640
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.
Alcoa Shares Fluctuate as Wells Fargo Upgrades Rating to Overweight
- Rating Upgrade: Wells Fargo upgraded Alcoa's rating from Equal Weight to Overweight with a price target increase from $67 to $70, reflecting analysts' optimistic outlook on tight aluminum market conditions, expecting price strength to persist into 2027.
- Market Dynamics: Alcoa shares have decoupled from aluminum prices, declining 11% over the past month while LME aluminum rose 3.6%, indicating a mix of challenges and opportunities for the company amid geopolitical tensions.
- Asset Monetization Opportunities: Analysts noted that Alcoa is actively seeking to monetize idle assets for data center conversions, with management revealing several deals in progress, which could lead to additional capital deployment and profit growth.
- Stable Alumina Prices: Despite approximately 5% disruption in global import demand at the Strait of Hormuz, alumina prices have remained firm, rising about $2/ton since the war began, with Alcoa's customers rerouting volumes to Asia, thus mitigating risk to the company.
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Alcoa Announces Quarterly Cash Dividend of $0.10 per Share
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- Company Vision: As a global leader in bauxite, alumina, and aluminum products, Alcoa aims to build a legacy of excellence for future generations, emphasizing its leadership in sustainability and innovation within the industry.
- Information Dissemination Channels: Alcoa plans to announce future developments and financial performance through its website, press releases, SEC filings, conference calls, media broadcasts, and webcasts, ensuring transparency and timely communication of information.
- Corporate Values: The company adopts a values-based approach that emphasizes integrity, operational excellence, care for people, and courageous leadership, aiming to turn raw potential into real progress while enhancing community safety and sustainability.
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Wells Fargo Upgrades Alcoa on Rising Aluminum Prices
- Rating Upgrade: Wells Fargo analyst Timna Tanners upgraded Alcoa from equal weight to overweight, raising the price target from $67 to $70, which implies a 10.7% upside from Wednesday's close, reflecting confidence in the persistent strength of aluminum prices.
- Aluminum Price Surge: Aluminum futures have risen over 15.5% year-to-date and soared more than 50% in the past 12 months, primarily driven by the U.S.-Iran conflict, which has increased both prices and demand, indicating that the strength in the aluminum market may be underappreciated by investors.
- Asset Monetization Potential: The analyst highlighted that Alcoa is considering monetizing idle assets for data center conversion, with management noting several deals in progress, which could provide additional capital deployment opportunities and enhance profitability.
- Mixed Market Sentiment: Despite Wells Fargo's optimistic outlook, analyst opinions are divided; LSEG data shows that among 15 analysts covering Alcoa, 8 rate it as a buy or strong buy, while the remaining 7 assigned hold or underperform ratings, reflecting differing views on the stock's potential.
See More
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- LyondellBasell Leads: LyondellBasell tops the list with a score of 4.93, benefiting from significant European operations that provide robust foreign revenue exposure, thereby reinforcing its competitive position in the global chemicals market.
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- Rating Upgrade: Wells Fargo upgraded Alcoa's rating from Equal Weight to Overweight with a price target increase from $67 to $70, reflecting analysts' optimistic outlook on tight aluminum market conditions, expecting price strength to persist into 2027.
- Market Dynamics: Alcoa shares have decoupled from aluminum prices, declining 11% over the past month while LME aluminum rose 3.6%, indicating a mix of challenges and opportunities for the company amid geopolitical tensions.
- Asset Monetization Opportunities: Analysts noted that Alcoa is actively seeking to monetize idle assets for data center conversions, with management revealing several deals in progress, which could lead to additional capital deployment and profit growth.
- Stable Alumina Prices: Despite approximately 5% disruption in global import demand at the Strait of Hormuz, alumina prices have remained firm, rising about $2/ton since the war began, with Alcoa's customers rerouting volumes to Asia, thus mitigating risk to the company.
See More
Alcoa Announces Quarterly Cash Dividend of $0.10 per Share
- Quarterly Cash Dividend: Alcoa's Board of Directors has declared a cash dividend of $0.10 per share, payable on June 5, 2026, to shareholders of record as of May 19, 2026, reflecting the company's commitment to returning value to its investors.
- Company Vision: As a global leader in bauxite, alumina, and aluminum products, Alcoa aims to build a legacy of excellence for future generations, emphasizing its leadership in sustainability and innovation within the industry.
- Information Dissemination Channels: Alcoa plans to announce future developments and financial performance through its website, press releases, SEC filings, conference calls, media broadcasts, and webcasts, ensuring transparency and timely communication of information.
- Corporate Values: The company adopts a values-based approach that emphasizes integrity, operational excellence, care for people, and courageous leadership, aiming to turn raw potential into real progress while enhancing community safety and sustainability.
See More
Latest Wall Street Ratings and Outlook
- Goldman Sachs Reiterates Nvidia Buy: Goldman Sachs anticipates a 'beat and raise' quarter for Nvidia ahead of its earnings report this month, focusing on the potential upside to its $1 trillion datacenter guidance, which could positively impact stock performance.
- JPMorgan Upgrades Freshpet: JPMorgan upgraded Freshpet from hold to buy following a first-quarter sales beat and guidance increase, expecting a rebound in share price as investors buy the dip after a 9% decline.
- Barclays Reiterates Microsoft Overweight: Barclays noted that Microsoft's story remains strong post-investor meetings, emphasizing management's focus on efficiency gains that are likely to enhance Azure growth and competitive positioning.
- Jefferies Upgrades Agilon Health: Jefferies highlighted improving visibility for Agilon Health, with supportive Medicare Advantage rates locked in, suggesting a favorable outlook that could attract investor interest moving forward.
See More
Wells Fargo Upgrades Alcoa on Rising Aluminum Prices
- Rating Upgrade: Wells Fargo analyst Timna Tanners upgraded Alcoa from equal weight to overweight, raising the price target from $67 to $70, which implies a 10.7% upside from Wednesday's close, reflecting confidence in the persistent strength of aluminum prices.
- Aluminum Price Surge: Aluminum futures have risen over 15.5% year-to-date and soared more than 50% in the past 12 months, primarily driven by the U.S.-Iran conflict, which has increased both prices and demand, indicating that the strength in the aluminum market may be underappreciated by investors.
- Asset Monetization Potential: The analyst highlighted that Alcoa is considering monetizing idle assets for data center conversion, with management noting several deals in progress, which could provide additional capital deployment opportunities and enhance profitability.
- Mixed Market Sentiment: Despite Wells Fargo's optimistic outlook, analyst opinions are divided; LSEG data shows that among 15 analysts covering Alcoa, 8 rate it as a buy or strong buy, while the remaining 7 assigned hold or underperform ratings, reflecting differing views on the stock's potential.
See More
Foreign Materials Stocks Show Strong Potential
- Quant Ratings Shine: Seeking Alpha's Quant system ranks the top ten materials stocks with scores above 4.0, indicating strong buy signals across chemicals, aluminum, gold, steel, and specialty materials, reflecting market optimism in these sectors.
- LyondellBasell Leads: LyondellBasell tops the list with a score of 4.93, benefiting from significant European operations that provide robust foreign revenue exposure, thereby reinforcing its competitive position in the global chemicals market.
- Aura Minerals Stands Out: Aura Minerals, a Canadian gold miner primarily operating in Brazil, Honduras, and Mexico, boasts a Quant score of 4.83, making it a prime example of foreign revenue-driven potential in the global gold market.
- Newmont and Aluminum Giants: Newmont, the world's largest gold miner, showcases a score of 4.80 with extensive operations across Africa, Australia, and Latin America, while Alcoa also demonstrates its international business strength with a score of 4.83.
See More
ALCOA CORP - REVOLVING FACILITY MATURITY DATE EXTENDED TO JUNE 27, 2028 - SEC FILING
- Maturity Date Extension: ALCORP has extended the maturity date of its revolving facility to June 27, 2028.
- SEC Filing: The extension was documented in a filing with the SEC.
See More
