Alcoa Well-Positioned To Benefit From Positive Pricing Momentum, Analyst Says
Portfolio Pulse from Lekha Gupta
Alcoa Corporation (NYSE:AA) received price target increases from analysts at BMO Capital Markets and Jefferies following better-than-expected Q1 FY24 results, with an EPS loss of $(0.81) and revenue of $2.60 billion. The company expects increased alumina production and shipments for FY24. The acquisition of Alumina Limited (OTC:AWCMF) for $2.2 billion is seen as beneficial. Analysts project improved EPS for FY24 and FY25, citing positive aluminum price momentum and demand across markets. SPDR S&P Metals & Mining ETF (NYSE:XME) and Macquarie ETF Trust Macquarie Energy Transition ETF (NYSE:PWER) offer exposure to Alcoa stock.
April 18, 2024 | 5:42 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Alcoa Corporation sees analyst price target increases following strong Q1 FY24 results and positive outlook on aluminum prices and demand.
The positive analyst outlook and price target increases reflect expectations of continued profitability and growth, likely leading to a positive short-term impact on AA's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Alcoa's acquisition of Alumina Limited is viewed positively by analysts, expected to benefit Alcoa in the long term.
The acquisition is expected to provide economic benefits and structural flexibility to Alcoa, which could positively influence AWCMF's valuation in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Macquarie ETF Trust Macquarie Energy Transition ETF, offering exposure to Alcoa, may see a positive impact from Alcoa's favorable analyst ratings and market outlook.
Given PWER's exposure to Alcoa, the ETF could experience a positive price movement as a result of Alcoa's strong performance and positive future projections, attracting investor interest.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
SPDR S&P Metals & Mining ETF offers exposure to Alcoa, potentially benefiting from the positive developments around Alcoa's financial results and outlook.
As XME includes Alcoa in its holdings, positive news and analyst upgrades for Alcoa could lead to increased investor interest in XME, potentially boosting its price in the short term.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 60