Alcoa upgraded to Buy from Neutral at UBS

UBS analyst Daniel Major upgraded Alcoa (AA) to Buy from Neutral with a price target of $80, up from $75. The firm believes smelter outages due to a protracted conflict in the Middle East will more than offset Alcoa’s near-term demand risks, resulting in “stronger for longer” aluminum prices and premiums. This will more than offset lower for longer alumina prices and driven “earnings resilience” that is not priced into Alcoa shares, the analyst tells investors in a research note. UBS also believes debt reduction could open the door for buybacks in the second half of 2026, serving as a positive catalyst for Alcoa shares.