JPMorgan Upgrades Alcoa to Neutral, Raises Price Target to $68 Amid Supply Risks
JPMorgan upgraded Alcoa from Underweight to Neutral and increased its price target to $68 from $50. The upgrade follows a 12% rise in aluminum prices linked to ongoing conflict in Iran, which impacts 20% of ex-China aluminum demand. Alcoa shares have increased by 6% since the conflict began, with a notable 99% gain over six months. The upgrade reflects concerns over energy costs, alumina pricing, and macroeconomic downturns. Alcoa also announced a quarterly dividend and plans to sell 10 curtailment sites to the data center industry.
Theia Market Signal Identification - AI Assisted
JPMorgan upgraded Alcoa (NYSE:AA) to Neutral, raising its price target to $68 from $50. This follows a 12% increase in aluminum prices due to conflict in Iran, which affects 20% of ex-China demand. Alcoa's stock rose 6% since the conflict began and has gained 99% over the past six months.
JPMorgan noted risks from high energy costs and potential demand destruction. Alcoa announced a $0.10 per share dividend payable on March 26, 2026, and plans to sell 10 closed sites to the data center industry. Wells Fargo raised its price target to $68, while Morgan Stanley downgraded its rating but adjusted its target to $64.
Comments