Morgan Stanley Lowers Alcoa PT to $38, Maintains Overweight Rating

Morgan Stanley Lowers Alcoa PT to $38, Maintains Overweight Rating

Morgan Stanley has recently revised its price target for Alcoa Corporation (AA) to $38, while maintaining an overweight rating. This adjustment comes amidst the anticipation of Alcoa's second-quarter earnings report, scheduled for Wednesday, July 16 [1].

The Pittsburgh-based company is expected to report quarterly earnings of 51 cents per share, an increase from 16 cents per share in the year-ago period. Revenue projections stand at $2.96 billion, up from $2.91 billion a year earlier [1].

Morgan Stanley's downgrade follows a series of analyst revisions ahead of Alcoa's earnings call. Citigroup analyst Alexander Hacking reinstated a Buy rating with a price target of $42 on July 8, 2025 [1]. Meanwhile, B. Riley Securities analyst Lucas Pipes maintained a Buy rating but cut the price target from $43 to $38 on June 24, 2025 [1]. UBS analyst Daniel Major downgraded the stock from Buy to Neutral with a price target of $31 on May 15, 2025 [1].

The delay in San Ciprián smelter operations due to a national power outage has also impacted Alcoa's stock performance. Shares fell 4.2% to close at $29.79 on Monday [1].

Alcoa's recent financial performance has been closely watched by analysts. The company's stock has seen mixed reactions, with some analysts maintaining buy ratings while others have adjusted their price targets downward. Despite the recent price target revision, Morgan Stanley's overweight rating suggests that the investment bank believes Alcoa remains an attractive investment opportunity.

Institutional investors have shown interest in Alcoa. Pzena Investment Management LLC, for instance, boosted its stake in Morgan Stanley (NYSE: MS) by 1.9% during the first quarter [2]. This increased interest underscores the ongoing market dynamics and investor sentiment surrounding Alcoa.

As Alcoa prepares to release its second-quarter earnings, investors and financial professionals will be closely monitoring the company's performance and how it aligns with analyst expectations. The earnings report will provide valuable insights into Alcoa's financial health and future prospects.

References:
[1] https://www.benzinga.com/analyst-stock-ratings/price-target/25/07/46418944/alcoa-earnings-are-imminent-these-most-accurate-analysts-revise-forecasts-ahead-of-earnings-call-
[2] https://www.marketbeat.com/instant-alerts/filing-pzena-investment-management-llc-boosts-stake-in-morgan-stanley-nysems-2025-07-17/