Alcoa downgraded to Neutral from Buy at UBS

UBS analyst Daniel Major downgraded Alcoa (AA) to Neutral from Buy with an unchanged price target of $31. The firm believes alumina is likely to remain lower for longer, though UBS remains constructive on the medium-term outlook for aluminum prices, and thinks near-term upside in LME aluminum will be capped by softening demand, the analyst tells investors in a research note. UBS notes that Alcoa is more exposed to aluminum vs. alumina and could benefit from a reduction in U.S. tariffs, but removal of section 232 is not the firm’s base case and thinks 2026 valuation is fair and that risk/reward is balanced.