8 Analysts Have This To Say About Alcoa
Providing a diverse range of perspectives from bullish to bearish, 8 analysts have published ratings on Alcoa (NYSE:AA) in the last three months.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 1 | 5 | 1 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 2 | 1 | 0 |
| 2M Ago | 1 | 1 | 2 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $56.75, a high estimate of $71.00, and a low estimate of $45.00. Marking an increase of 17.93%, the current average surpasses the previous average price target of $48.12.
Breaking Down Analyst Ratings: A Detailed Examination
The standing of Alcoa among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Carlos De Alba | Morgan Stanley | Raises | Equal-Weight | $64.00 | $52.00 |
| Timna Tanners | Wells Fargo | Lowers | Equal-Weight | $64.00 | $71.00 |
| Timna Tanners | Wells Fargo | Raises | Equal-Weight | $71.00 | $58.00 |
| Bill Peterson | JP Morgan | Raises | Underweight | $50.00 | $45.00 |
| Timna Tanners | Wells Fargo | Raises | Overweight | $58.00 | $40.00 |
| Alexander Hacking | Citigroup | Raises | Buy | $54.00 | $42.00 |
| Daniel Major | UBS | Raises | Neutral | $48.00 | $42.00 |
| Bill Peterson | JP Morgan | Raises | Neutral | $45.00 | $35.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Alcoa. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Alcoa compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Alcoa's stock. This examination reveals shifts in analysts' expectations over time.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Alcoa's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on Alcoa analyst ratings.
Unveiling the Story Behind Alcoa
Alcoa is a vertically integrated aluminum company whose operations include bauxite mining, alumina refining, and manufacturing primary aluminum. It is the world's largest bauxite miner and alumina refiner by production volume, and the eighth-largest aluminum producer. Profits are closely tied to prevailing commodity prices along the aluminum supply chain.Alcoa was the first mass producer of aluminum, launching the world-changing Hall-Heroult smelting process in the 1880s, making aluminum affordable. It listed as a public company in 1925. In 2016, Alcoa spun off its automotive and aerospace metal parts segment to focus on mining, smelting, and refining. It bought the 40% unowned balance of AWAC in mid-2024, meaning refining assets are now predominantly wholly owned, as with smelting.
Alcoa: Delving into Financials
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
Revenue Growth: Alcoa displayed positive results in 3M. As of 31 December, 2025, the company achieved a solid revenue growth rate of approximately 15.16%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.
Net Margin: Alcoa's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 6.55%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 3.62%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Alcoa's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.4%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Alcoa's debt-to-equity ratio is below the industry average at 0.4, reflecting a lower dependency on debt financing and a more conservative financial approach.
How Are Analyst Ratings Determined?
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.