Positive Outlook for Alcoa: Strategic Initiatives and Market Conditions Drive Buy Rating

Morgan Stanley analyst Carlos De Alba maintained a Buy rating on Alcoa (AA – Research Report) today and set a price target of $35.00.

Carlos De Alba has given his Buy rating due to a combination of factors including Alcoa’s strategic initiatives to enhance productivity and reduce costs, as well as the optimization of its asset portfolio. The company is also poised to benefit from production tax credits for aluminum in the United States, which are expected to contribute $50-60 million annually.
Furthermore, despite the volatility in alumina prices and the impact of new US tariff policies, a tighter aluminum market is anticipated to sustain profitability. This financial stability is expected to enable Alcoa to efficiently manage its debt from the acquisition of Alumina Ltd. and potentially enhance shareholder returns. These elements collectively support the positive outlook for Alcoa’s stock.

In another report released on April 17, B.Riley Financial also maintained a Buy rating on the stock with a $43.00 price target.