Alcoa, the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Katja Jancic from BMO Capital maintained a Hold rating on the stock and has a $30.00 price target.
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Katja Jancic’s rating is based on Alcoa’s performance in a challenging operating environment, where the company managed to exceed expectations for the second quarter of 2025. Despite this positive outcome, there are still uncertainties, such as permitting delays in Western Australia and potential tariff issues with Brazil, which could impact costs. These factors contribute to a cautious outlook, as the company needs to navigate these challenges effectively.
Additionally, while Alcoa is making progress towards its optimal capital structure with a reduction in net debt, the gross debt remains above the target range, indicating a need for continued focus on de-leveraging. Furthermore, the restart of the San Ciprián smelter, although underway, is delayed and expected to incur additional losses. These elements, combined with the sensitivity to aluminum and alumina price fluctuations, have led to a Hold rating, reflecting a balanced view of potential risks and opportunities.
Jancic covers the Basic Materials sector, focusing on stocks such as Nucor, Algoma Steel Group, and Commercial Metals Company. According to TipRanks, Jancic has an average return of 11.0% and a 65.00% success rate on recommended stocks.
In another report released yesterday, J.P. Morgan also maintained a Hold rating on the stock with a $27.00 price target.