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Investing.com - BMO Capital raised its price target on Alcoa (NYSE:AA) to $37.00 from $35.00 on Thursday, while maintaining a Market Perform rating following the aluminum producer’s third-quarter 2025 results. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with the company maintaining a "GREAT" overall financial health score.
The aluminum company delivered slightly better-than-expected results for the quarter, prompting BMO to increase its near-term estimates after adjusting its model for Alcoa’s guidance and updating market prices. The company’s strong performance is reflected in its healthy gross profit margin of 20.7% and robust revenue growth of 19.4% over the last twelve months.
BMO noted that current aluminum and Midwest Premium (MWP) spot prices could offer additional upside potential for Alcoa if these price levels are sustained.
The firm highlighted that Alcoa is approaching its net debt target, which increases capital allocation flexibility, though the company’s preference in the near term remains focused on debt reduction.
BMO also mentioned that while Alcoa’s Western Australia bauxite permitting is progressing, uncertainties remain around this process.
In other recent news, Alcoa Corporation announced its third-quarter 2025 earnings, which did not meet analyst expectations. The company reported an adjusted net loss of $0.02 per share, while analysts had anticipated a positive earnings per share of $0.02. This resulted in a negative surprise of 200%. Additionally, Alcoa’s revenue for the quarter was $3 billion, which was below the expected $3.13 billion. These earnings and revenue figures are significant for investors as they provide insight into the company’s financial performance. The earnings results are crucial for understanding the company’s current financial health. No information about analyst upgrades or downgrades was mentioned in the recent reports. There were also no updates on mergers or other company news in the current context.
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