Alcoa's Lower Quality Bauxite Impact Extended To 2027: Analyst Hints At Closure Of Kwinana Refinery
Portfolio Pulse from Nabaparna Bhattacharya
BMO Capital Markets analyst Katja Jancic has reiterated the Market Perform rating on Alcoa Corporation (NYSE:AA), but lowered the price target to $28 from $30. Alcoa reported quarterly adjusted losses of $(1.14) per share, missing the analyst consensus estimate. The company is expected to continue mining lower-quality bauxite until 2027 due to concessions made in its revised Mine Management Program. A restructuring program at the Kwinana refinery is expected to offset some of the negative impact. AA shares are trading lower by 8.11% to $24.37.
October 19, 2023 | 6:59 pm
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NEGATIVE IMPACT
Alcoa Corporation's stock price is expected to be negatively impacted in the short term due to the lowered price target and the company's continued mining of lower-quality bauxite until 2027.
The lowered price target by BMO Capital Markets analyst indicates a bearish outlook for the company. Additionally, the company's decision to continue mining lower-quality bauxite until 2027 could negatively impact its profitability and hence, its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100