Argus Downgrades Alcoa (AA) to Hold, 'uncertain demand environment'

Argus analyst David Coleman downgraded Alcoa (NYSE: AA) from Buy to Hold.

The analyst comments "We are lowering our rating on Alcoa Corp. (NYSE: AA), a global provider of bauxite, alumina and aluminum products, to HOLD from BUY. We view Alcoa as a well-run company with a long track record in its industry. The near-term environment is more challenging, though, and Alcoa has posted net losses for the past three quarters. Given the uncertain demand environment, we do not have much visibility into earnings. The balance sheet is solid but the yield of 1.1% does not signal value. From a technical perspective, the shares have been in a bearish pattern of lower highs and lower lows since March 2022. We may look to move AA back to our BUY list if they fall toward technical support in the mid-$20s, or if management can return the company to revenue and earnings growth."

For an analyst ratings summary and ratings history on Alcoa click here. For more ratings news on Alcoa click here.

Shares of Alcoa closed at $33.38 yesterday.

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