Update shared on 05 Nov 2025
Fair value Increased 1.06%Analysts have raised their price target for Alcoa slightly. The new target is $39.63, up from $39.21. This change is based on modest improvements in expected revenue growth and profit margins, as well as updated discount rate assumptions.
What's in the News
- Alcoa CEO William Oplinger stated the company seeks acquisitions and investments that deliver shareholder value and align with its core values. Cultural compatibility is seen as vital for any merger or acquisition (Investor Day 2025).
- The company reported third quarter 2025 operating results. Bauxite production dropped slightly year-over-year, but aluminum production increased to 579 kmt from 559 kmt last year.
- Alcoa is investing $60 million to modernize its Massena Operations in New York and has secured a new 10-year renewable energy contract, supporting jobs and facility upgrades.
- The company announced the closure of the Kwinana alumina refinery in Western Australia following a period of curtailment, citing operating costs and market conditions as key factors.
- Alcoa will participate in a joint venture with U.S., Australian, and Japanese interests to develop a gallium plant, aiming to diversify critical mineral supply chains and support semiconductor industry needs.
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $39.21 to $39.63.
- The discount rate has increased from 8.09% to 8.48%.
- Revenue growth expectations have ticked up from 1.52% to 1.58%.
- Net profit margin is now projected at 7.74%, up from 7.45%.
- The future P/E ratio has moved down modestly from 12.92x to 12.60x.
Disclaimer
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