Wolfe Research downgraded Alcoa to Underperform from Peer Perform with a $25 price target. The analyst cites the firm’s more cautious 12-month aluminum price outlook for the downgrade. Wolfe is now forecasting global surpluses on soft demand across end markets, rising output from Yunnan, China as drought conditions abate, and continued packaging destocking. Alcoa also faces company-specific lingering Western Australia mining challenges, which can hamper profits t least through Q1 of 2024, the analyst tells investors in a research note.
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