Stock Pulse
Bank of America downgraded Alcoa (AA) from Buy to Underperform, slashing its price target from $58 to $26 due to weakened aluminum and alumina price forecasts and macroeconomic uncertainty [4], [5], [6]. Despite Q1 earnings projections of $1.73 per share, a 313.6% year-over-year increase, and revenue projected at $3.47 billion, up 33.6%, the consensus EPS estimate has been revised downward [3]. Alcoa formed a joint venture with IGNIS EQT to restart its San Ciprián smelter in Spain, contributing $81 million with potential additional funding up to $108 million, though a net loss of $80-100 million is projected for 2025 [7], [9], [12]. While an Alcoa director recently purchased additional shares [11], broader economic concerns regarding declining consumer confidence and tariffs pose potential headwinds for the company [1].