Alcoa Inc. (AA) Plunges 10.13% on Bank of America Downgrade

Alcoa Inc. (AA) shares plunged 10.13% intraday, marking the lowest level since February 2021. The stock has been on a downward spiral, declining for four consecutive days with a cumulative drop of 26.82% over the past four days.

Bank of America recently downgraded Alcoa's stock from "Buy" to "Underperform," citing a weaker outlook for aluminum and alumina prices. The downgrade also reflects increased uncertainty around demand and projected financial challenges for the company. The bank has significantly lowered its price objective for Alcoa's stock, highlighting downside risks to earnings and valuation. The forecasted EBITDA for 2025 has been cut by 46%, and free cash flow has been reduced by 68%.

Additionally, the impact of U.S. tariffs on Canadian aluminum has raised concerns about potential negative effects on Alcoa's earnings. These tariffs could disrupt the company's supply chain and increase operational costs, further exacerbating the financial challenges Alcoa is facing. The combination of these factors has contributed to the recent decline in Alcoa's stock price, as investors reassess the company's prospects in the face of a challenging market environment.