Alcoa Analyst Boosts Price Target: Growth Strategy Hinges On Kwinana Savings, San Ciprian Resolution

Alcoa Corporation (NYSE:AA) shares are trading lower on Thursday after rebounding from Wednesday’s increase.

Yesterday, the company reported third-quarter sales of $2.904 billion, missing the consensus of $2.967 billion and adjusted EPS of $0.57, exceeding the consensus of $0.28.

JPMorgan analyst Bill Peterson raised the price target to $39 from $36 while maintaining a Neutral rating.

The analyst wrote that with low-hanging fruit already secured, future progress depends on savings from Kwinana's curtailment, the ramp-up at Warrick/Alumar and potential benefits from the Inflation Reduction Act (IRA).

The analyst anticipated additional support from lagged alumina pricing for the fourth quarter before it normalizes later next year.

The analyst ...