Morgan Stanley Downgrades Alcoa (AA) to Equal Weight Following Outperformance, Balanced Risk-Reward

Alcoa Corporation (NYSE:AA) is one of the cheap hot stocks to invest in right now. On January 27, Morgan Stanley downgraded Alcoa to Equal Weight from Overweight, while raising its price target to $64 from $52. The firm noted that while the company continues to benefit from high aluminum prices on the London Metal Exchange, the stock’s significant outperformance compared to its peers in recent months has resulted in a more balanced risk-reward profile.

On January 23, Bank of America raised the firm’s price target on Alcoa to $38 from $33 with an Underperform rating on the shares. The adjustment follows Alcoa’s Q4 2025 results and reflects higher estimates as well as an increase in the firm’s target based on mark-to-market pricing for the quarter.

On the same day, BMO Capital lowered the firm’s price target on Alcoa Corporation (NYSE:AA) to $65 from $67 with a Market Perform rating. The firm stated that while the company posted a Q4 earnings beat, it was due to a one-time CO2 credit. For 2026, the firm noted that aluminum production and shipment targets generally align with estimates, but alumina targets are mixed.

Alcoa Corporation (NYSE:AA), together with its subsidiaries, engages in the bauxite mining, alumina refining, aluminum production, and energy generation business in Australia, Brazil, Canada, Iceland, Norway, Spain, the US, and internationally. The company has two segments: Alumina and Aluminum.

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Disclosure: None. This article is originally published at Insider Monkey.