Morgan Stanley analyst Carlos De Alba has maintained their bullish stance on AA stock, giving a Buy rating on September 27.
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Carlos De Alba has given his Buy rating due to a combination of factors that suggest Alcoa’s strategic decisions will lead to long-term benefits. The closure of the Kwinana alumina refinery, despite its immediate financial impacts, is seen as a move that will streamline operations and reduce costs associated with less efficient facilities. This decision aligns with Alcoa’s broader strategy to optimize its asset portfolio and focus on more profitable ventures.
Furthermore, while the restructuring and related charges are significant, they are expected to be offset by future tax benefits and adjustments in asset-retirement obligations. The anticipated cash outflows are largely a reallocation of existing obligations, which should not adversely affect the company’s financial health in the long run. These strategic adjustments are expected to enhance Alcoa’s operational efficiency and financial performance, justifying the Buy rating.
In another report released on September 27, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $36.00 price target.