Deep Dive Into Alcoa Stock: Analyst Perspectives (7 Ratings)

During the last three months, 7 analysts shared their evaluations of Alcoa AA, revealing diverse outlooks from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Alcoa, revealing an average target of $32.0, a high estimate of $42.00, and a low estimate of $25.00. Observing a downward trend, the current average is 12.57% lower than the prior average price target of $36.60.

Decoding Analyst Ratings: A Detailed Look

A comprehensive examination of how financial experts perceive Alcoa is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Alcoa. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Alcoa compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Alcoa's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Alcoa's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Alcoa analyst ratings.

Discovering Alcoa: A Closer Look

Alcoa is a vertically integrated aluminum company whose operations include bauxite mining, alumina refining, and manufacturing primary aluminum. It is the world's largest bauxite miner and alumina refiner by production volume, and the eighth-largest aluminum producer. Profits are closely tied to prevailing commodity prices along the aluminum supply chain.Alcoa was the first mass producer of aluminum, launching the world-changing Hall-Heroult smelting process in the 1880s, making aluminum affordable. It listed as a public company in 1925. In 2016, Alcoa spun off its automotive and aerospace metal parts segment to focus on mining, smelting, and refining. It bought the 40% unowned balance of AWAC in mid-2024, meaning refining assets are now predominantly wholly owned, as with smelting.

Alcoa: Delving into Financials

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Alcoa's remarkable performance in 3M is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 29.63%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Materials sector.

Net Margin: Alcoa's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 16.27%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Alcoa's ROE excels beyond industry benchmarks, reaching 9.99%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Alcoa's ROA stands out, surpassing industry averages. With an impressive ROA of 3.83%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Alcoa's debt-to-equity ratio stands notably higher than the industry average, reaching 0.46. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: What Are They?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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