In a report released yesterday, Alexander Hacking from Citi maintained a Buy rating on Alcoa, with a price target of $42.00.
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Alexander Hacking has given his Buy rating due to a combination of factors including Alcoa’s financial performance and strategic responses to market conditions. The company reported a slightly higher than expected EBITDA for the second quarter of 2025, which was supported by positive free cash flow due to a release of working capital. Additionally, Alcoa’s strategic handling of tariffs, where gains from US smelters are offsetting the negative impacts on Canadian smelters, has been viewed as neutral-to-positive.
Despite some challenges, such as delays in WA bauxite approvals and potential impacts from Brazilian tariffs, Alcoa is actively engaging in advocacy and has contingency plans in place. The company’s strong US value-add order book and the positive effects from production cuts in China further support the Buy rating. Moreover, Alcoa’s 2025 EBITDA estimates have been raised, reflecting confidence in its future performance, with an expected share price return of 47.1%.
Hacking covers the Basic Materials sector, focusing on stocks such as Alcoa, Freeport-McMoRan, and Cleveland-Cliffs. According to TipRanks, Hacking has an average return of 14.7% and a 59.89% success rate on recommended stocks.
In another report released on July 15, B.Riley Financial also maintained a Buy rating on the stock with a $37.00 price target.