Alcoa upgraded to Overweight from Equal Weight at Wells Fargo

Wells Fargo upgraded Alcoa (AA) to Overweight from Equal Weight with a price target of $70, up from $67. The firm believes the strength in aluminum prices can persist well into 2027 on limited capacity additions and low global inventories. The Iran war has worsened already tight market conditions for aluminum, the analyst tells investors in a research note. Wells believes the benefit to Alcoa from aluminum price strength is underappreciated at current share levels. The firm also sees catalysts from the company monetizing idled assets for data center conversion.