© Reuters. Alcoa (AA) stock gets 3rd rating cut in a month on soft aluminum forecasts
Alcoa (NYSE:) stock received a downgrade today at JPMorgan to reflect the revised aluminum price forecast.
Analysts made a move due to weaker aluminum fundamentals and mine-permitting uncertainty. The new price target on AA stock is $36 per share.
“Weak underlying fundamentals combined with still relatively elevated energy costs and lengthy/costly restarts make the economics for ramping additional capacity (i.e. Warrick, Lista, San Ciprian) unattractive anytime soon in our view,” analysts said in a client note.
Constellium (NYSE:) is JPMorgan’s top pick in this sector.
This is Alcoa’s 3rd downgrade in 3 weeks after Morgan Stanley and Wolfe Research analysts also lowered their ratings.
Alcoa shares are down about 20% year-to-date.
