Alcoa cut at Morgan Stanley as good news already priced in (NYSE:AA)

Alcoa cut at Morgan Stanley as good news already priced in (NYSE:AA)

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Alcoa (NYSE:AA) -2.5% pre-market after Morgan Stanley downgrades shares to Equal Weight from Overweight with a $100 price target after strongly outperforming peers and the S&P 500 in recent weeks.

Alcoa has materially improved its balance sheet and shored up profitability, and it is well positioned to benefit from a constructive outlook for aluminum due to tightening global aluminum supply, but these positives already are baked in to the stock price, analyst Carlos De Alba says, seeing limited company specific catalysts in the near term.

Morgan Stanley raises its medium-term aluminum price forecast due to impacts from the Russia-Ukraine war, with structurally higher power prices having a significant knock-on effect.

Alcoa shares have run up to historic highs as the demand for aluminum has soared globally alongside a supply deficit.

Originally Posted on: https://seekingalpha.com/news/3816927-alcoa-cut-at-morgan-stanley-as-good-news-already-priced-in?source=feed_tag_commodities
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