Forecasting The Future: 11 Analyst Projections For Alcoa

Analysts' ratings for Alcoa AA over the last quarter vary from bullish to bearish, as provided by 11 analysts.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $41.45, a high estimate of $55.00, and a low estimate of $36.00. Surpassing the previous average price target of $40.44, the current average has increased by 2.5%.

Investigating Analyst Ratings: An Elaborate Study

The standing of Alcoa among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Alcoa. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Alcoa compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Alcoa's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

For valuable insights into Alcoa's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Alcoa analyst ratings.

Delving into Alcoa's Background

Alcoa Corp is a vertically integrated aluminum company whose operations include bauxite mining, alumina refining, and the manufacture of primary aluminum. It is a bauxite miner and alumina refiner by production volume, and its profits are closely tied to prevailing commodity prices along the aluminum supply chain. The company segments include Bauxite; Alumina and Aluminum. It generates maximum revenue from the Aluminum segment. Geographically, it derives a majority of its revenue from the United States.

Understanding the Numbers: Alcoa's Finances

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, Alcoa showcased positive performance, achieving a revenue growth rate of 8.27% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.

Net Margin: Alcoa's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 0.69%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Alcoa's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 0.51%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Alcoa's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.14%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Alcoa's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.65, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: Simplified

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.