Morgan Stanley said it sees a weakening dollar and supply disruptions at major copper producers pushing metal prices higher.
Alcoa Corp’s (AA) shares rose over 4% in afternoon trading on Wednesday after Morgan Stanley raised its price target to $42.50 from $38, noting a rise in metal prices.
Morgan Stanley maintained an ‘Overweight’ rating, according to TheFly. The firm updated price targets and estimates across its mining coverage to factor in new commodity price forecasts and foreign exchange assumptions.
The firm said it sees a weakening dollar and supply disruptions at major copper producers pushing metal prices higher.
Retail sentiment on Alcoa improved to ‘bullish’ from ‘neutral’ territory a day ago, with message volumes at ‘normal’ levels, according to data from Stocktwits. The retail user message count on the stock increased by 900% in the last 24 hours on Stocktwits.
In September, Alcoa CEO Bill Oplinger said in an interview with Bloomberg that American metal has become significantly more expensive due to President Donald Trump’s 50% tariff on aluminum imports. He had then noted that American customers or shareholders will ultimately bear the higher price.
On Tuesday, Wells Fargo initiated coverage of Alcoa with an ‘Overweight’ rating and $40 price target. The firm said it expects potential positive catalysts from the company’s upcoming late October investor day, including more details on emerging technologies outlined at its prior investor day four years ago.
Wells Fargo is also expecting more details on potential asset sales across five different locations. Shares of Alcoa have fallen 2% this year and declined nearly 4% in the last 12 months.
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