Alcoa's analyst price target has increased from $36.64 to $39.21. This change reflects improved revenue growth and profit margin projections according to analysts.
What's in the News
- Alcoa will partner with the U.S., Australian, and Japanese governments, along with Sojitz Corporation, to develop a gallium plant at its Wagerup alumina refinery in Western Australia. The plant is expected to produce 100 metric tons of gallium annually, supporting critical supply chains for technology and defense sectors (Key Developments).
- Alcoa announces the permanent closure of its Kwinana alumina refinery in Western Australia following an earlier production curtailment. The company cites facility age, operating costs, and market conditions as reasons for the closure. This action will reduce global refining capacity and lead to a gradual reduction in workforce throughout 2026 (Key Developments).
- The company is coordinating with the Western Australian Government to explore future economic development opportunities for the Kwinana site, including potential land use options (Key Developments).
- No shares were repurchased by Alcoa during the second quarter of 2025 under its existing buyback program (Key Developments).
- Alcoa Corporation held an Analyst/Investor Day and updated stakeholders on current strategies and performance (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has increased from $36.64 to $39.21. This signals higher fair value expectations for Alcoa shares.
- Discount Rate has decreased slightly, moving from 8.15% to 8.09%. This suggests a marginally lower risk premium in analyst models.
- Revenue Growth projections have improved from 1.25% to 1.52%. This reflects higher anticipated expansion in the company's top-line performance.
- Net Profit Margin estimate has risen slightly, going from 7.35% to 7.45%. This indicates modest improvements in expected profitability.
- Future P/E Ratio is projected to increase from 12.37x to 12.92x. This implies greater confidence in Alcoa's future earnings potential.
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