Barclays Starts Alcoa (AA) at Overweight

Barclays analyst Richard Garchitorena initiates coverage on Alcoa (NYSE: AA) with a Overweight rating and a price target of $55.00.

The analyst comments: “We initiate coverage of Alcoa (AA) with an Overweight rating and $55 PT, as we believe weaker aluminum expectations and near-term alumina pressure are largely reflected in the share price. We see the pending acquisition of South32's bauxite, alumina and aluminum interests (referred to as Aligroup) as adding lower-cost capacity and improving Alcoa’s position on the cost curve, providing company-specific earnings and valuation upside, with ~$900m in expected NPV synergies. While we still see a tight market in 2026 (WoodMac estimates a 900k mt global deficit this year), we are already assuming prices soften in 2H27, with risks in our view skewed to higher for longer, given uncertainty on a potential resolution to Middle East disruptions. Trading at ~3.5x EV/EBITDA (vs. its average historical 12M forward multiple of ~4.9x), we see value in the shares.”

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 $41.49 yesterday.

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