In March 2021, Alcoa Corp.’s (AA) shares received a positive impetus. Alcoa Corporation (AA) saw a rise of 3.13% in the recent trading period, with $29.66 its most recent closing price. The stock is currently 11.33 percent below its 52-week high of $33.45 and -419.44% above its 52-week low of $5.71. Positive recommendations and an expectation that aluminum will rise in price influenced the decision.
Goldman Sachs analysts raised the target price for Alcoa in early March to $ 32, believing that aluminum would increase in price from $ 2,300 to $ 2,500-$ 2,750 per ton over the next three years.
AA stock was raised to a target price of $ 36 by Deutsche Bank last week on the expectation that aluminum will cost $ 2145 per tonne in 2021 and $ 2050 to follow.
The analysts at Morgan Stanley raised the price target on Alcoa Corp. (AA) to $ 43 in this week’s report. The bank has estimated that Alcoa shares are currently selling at only a fraction of their historical. In the long-run, the Alcoa Corp can expect to gain benefits from increased demand for more environmentally friendly technology, especially since aluminum has a higher value than copper.
For Morgan Stanley, the demand for aluminum is probably referring to the lightness and durability of the metal that permits electric vehicles’ production, structure for wind farms, vessels for ships, environmentally friendly packaging, and, therefore, electric vehicles.
As one of the most important aluminum suppliers in the United States, Alcoa Corp. (AA) makes many products. Alcoa generated a cash flow of $ 41 million even in a challenging year such as 2020 when many projects were suspended. Increased cash flow this year could result in a figure as high as $390 million.
For the past five business days, Alcoa Corp.’s (AA) shares were down -4.91% percent; for the last thirty business days, they increased 9.04%. AA stock rose 37.25% during the previous quarter. The stock’s output grew 154.81% percent within the six-month closing period, while its annual general production increased 318.34%. Currently, the AA stock has performed better than the beginning of the calendar year with a 28.68% improvement.