Wolfe Research Downgrades Alcoa (AA) to Underperform, 'more cautious 12-month view on aluminum prices'

Wolfe Research analyst Timna Tanners downgraded Alcoa (NYSE: AA) from Peerperform to Underperform, PT $25.00.

The analyst comments "We downgrade AA to Underperform with a new $25 price target using 7x 2024E EV/ EBITDA, up from its historical average ~6x to reflect expected challenging aluminum markets ahead. Our more cautious 12-month view on aluminum prices reflects soft demand across end markets, rising output from Yunnan, China as drought conditions abate, and continued packaging destocking. In addition, AA's $55M/qtr added mining cost/inefficiencies in Australia could drag on beyond the current Q124E expectation."

For an analyst ratings summary and ratings history on Alcoa click here. For more ratings news on Alcoa click here.

Shares of Alcoa closed at $34.14 yesterday.

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