JPMorgan downgraded Alcoa (AA) to Underweight from Neutral with a price target of $50, up from $45. The firm cites valuation for the downgrade. JPMorgan continues to favor copper over aluminum due to supply disruptions and a weaker dollar. While Alcoa continues to execute on driving efficiencies and cost downs, the stock’s risk/reward is skewed negatively at current valuation levels amid forthcoming supply additions, the analyst tells investors in a research note.
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