Bank of America Securities analyst Lawson Winder reiterated a Buy rating on Alcoa (AA – Research Report) today and set a price target of $58.00.
Lawson Winder has given his Buy rating due to a combination of factors influencing Alcoa’s financial outlook. The analyst anticipates a significant increase in Alcoa’s Q1 2025 adjusted EBITDA, driven by higher realized aluminum prices, despite a decline in alumina prices. This revised estimate surpasses both prior forecasts and consensus expectations, suggesting potential upside for the company’s financial performance.
Furthermore, Winder notes that the impact of tariffs on Canadian aluminum is likely to be limited, as the higher Midwest premium could offset these effects. Additionally, the potential monetization of idle properties and clarity on the future of the San Ciprián facility are seen as key catalysts for Alcoa’s growth. These factors, combined with a bullish outlook on aluminum, reinforce the Buy rating for Alcoa’s stock.
Winder covers the Basic Materials sector, focusing on stocks such as Kinross Gold, Eldorado Gold, and Franco-Nevada. According to TipRanks, Winder has an average return of 4.0% and a 51.70% success rate on recommended stocks.
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