Alcoa draws downgrade from Citi on aluminum prices

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Alcoa AA, -6.69% shares on Friday fell 0.7% in premarket trades as the stock extended a big loss of 16.9% in regular trades on Thursday. Citigroup analyst Alexander Hacking on Thursday downgraded Alcoa to neutral from buy and kept his target price at $84 a share. “Alcoa seems fairly valued against this backdrop pricing in around $2,800 aluminum price in the middle of spot and Citi’s long term price of $2,500,” Hacking said. “Aluminum – and by extension AA – remain one of our best long-term ideas in metals but the near-term risk reward is more balanced following a 1000%, two-year rally in the stock.” Alcoa shares are up 21% so far in 2022, compared to a drop of 7.8% by the S&P 500 SPX, -2.77%.

This article was originally published by Marketwatch.com. Read the original article here.

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