Downgrading Alcoa As Aluminum Nears Prior Peak
Alcoa Corporation has experienced a significant increase of nearly 45% year-to-date, largely due to rising aluminum prices. While a strong Q2 performance is anticipated, the sustainability of these prices raises concerns, leading to a downgrade to a hold rating. Further investment in Alcoa is contingent on clearer indications of aluminum price stability.
- ▪Alcoa's stock has surged nearly 45% year-to-date driven by high aluminum prices.
- ▪The company is expected to report a strong Q2, with projected revenue of $4.07 billion and EPS of $2.75.
- ▪Despite operational strength, the uncertainty surrounding aluminum price sustainability has prompted a downgrade to hold.
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