Alcoa price target raised to $28 from $27 at BofA

BofA raised the firm’s price target on Alcoa (AA) to $28 from $27 and keeps an Underperform rating on the shares after the company reported Q3 adjusted EBITDA of $270M, above BofA and consensus estimates. The firm adds that recently announced foray into the future production of gallium, in partnership with the U.S. and Australian governments, is “a small but interesting development.” The firm marks-to-market commodity prices higher and raises Q4 EBITDA estimates, which drives its price target increase, but it reiterates an Underperform rating given the ongoing tariffs on Canadian shipments, rampup issues at San Ciprian, and poor bauxite quality in Alumina.