Stock Pulse
Bank of America downgraded Alcoa (AA) to Underperform from Buy, slashing its price target from $58 to $26 due to weakened aluminum and alumina price forecasts and uncertain future demand [4], [5], [6]. While Q1 earnings are projected to show significant year-over-year growth, reaching $1.73 per share and $3.47 billion in revenue, the consensus EPS estimate has been revised downward [3]. Alcoa formed a joint venture with IGNIS EQT to restart its San Ciprián smelter, mitigating financial risk but projecting a net loss in 2025 [7], [9]. Declining consumer confidence and uncertainty around tariffs pose potential headwinds for aluminum demand [1]. Director Steven W. Williams recently purchased additional shares [11], but Jim Cramer advised investors to avoid the stock [8].