Alcoa named 2025 Top Pick, price target raised to $55 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Alcoa (AA) to $55 from $49 and keeps an Overweight rating on the shares as part of a broader research note previewing 2025 for America’s Metals & Mining names. The firm is also naming Alcoa as its Top Pick for 2025. Decelerating global growth will pose challenges for mining stocks, particularly if China economic policy remains modest and reactive, and given the demand uncertainty, the firm prefers base metal equities vs. iron ore names on tighter supply outlooks, the analyst tells investors in a research note. Morgan Stanley adds that Alcoa is taking several actions to increase productivity, reduce costs and optimize its asset portfolio, also noting that the risks surrounding bauxite mining in Western Australia have declined.