Alcoa price target raised by $4 at JPMorgan, here’s why

JPMorgan raised the firm’s price target on Alcoa to $30 from $26 and keeps a Neutral rating on the shares. The analyst sees downside to Q4 consensus estimates on weaker pricing, but says news late last night that the local government in Western Australia will allow for the continuation of bauxite mining “provides much needed clarity on a path forward.” This could remove a key overhang on shares, but poor bauxite grades should remain a drag through 2027 and tough decisions remain around Alcoa’s San Ciprian complex (and loss-making Kwinana refinery, the analyst tells investors in a research note. The firm says current share levels could prove a solid entry point ahead of signs of improving fundamentals, likely in the second half of 2024 “at the earliest.”