BofA double downgraded Alcoa (AA) to Underperform from Buy with a price target of $26, down from $58. The BofA Commodities team has refreshed its price forecasts and lowered its aluminum forecast by 12% and its alumina view by 38%, the analyst tells investors. Aluminium, copper and zinc supply is constrained, but while the commodities team is constructive on base metals longer term, the near-term looks uncertain on demand concerns, the analyst added.
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