BofA Adjusts Alcoa (AA) Target Following Updated Metal Price Forecasts

Alcoa Corporation (NYSE:AA) is included among the 13 Best March Dividend Stocks to Buy.

On February 26, BofA analyst Lawson Winder raised the firm’s price recommendation on Alcoa Corporation (NYSE:AA) to $42 from $38. The analyst kept an Underperform rating on the shares. The analyst said the update reflects revised forecasts for metal prices in 2026. As those assumptions changed, the firm adjusted its valuation outlook across North American Metals & Mining stocks under its coverage.

Around the same time, Reuters reported on February 24 that Alcoa is exploring the sale of 10 of its closed or curtailed sites to companies in the data centre industry. The company expects to complete the first sale by the end of June. These sites have drawn interest because of their access to large and reliable energy sources. Aluminum production requires significant electricity, especially for smelting. Now, the same energy access that once supported aluminum operations has become valuable to data centre operators, whose power needs continue to grow. Alcoa CEO Bill Oplinger made the following comment at the BMO Global Metals, Mining and Critical Minerals Conference in Florida:

“We have 10 sites that we’re focused on selling into that space. We think we’ll have the first sale in the first half of this year. There are two that could follow quickly after that.”

Oplinger said the company has traditionally aimed to maximise value and limit liabilities when selling assets. He also noted that the rise of AI could influence how these sites are valued, given the growing demand for power-intensive infrastructure.

Alcoa Corporation (NYSE:AA) operates as a vertically integrated aluminum producer. Its business spans bauxite mining, alumina refining, aluminum smelting and casting, and energy generation. The company reports its operations through two main segments: Alumina and Aluminum.

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