Morgan Stanley Downgrades Alcoa (AA) to Equal Weight Following Outperformance, Balanced Risk-Reward

Core Viewpoint - Alcoa Corporation is currently viewed as a cheap stock with potential investment opportunities, despite recent downgrades from various financial institutions [1][2][3]. Group 1: Analyst Ratings and Price Targets - Morgan Stanley downgraded Alcoa to Equal Weight from Overweight, raising its price target to $64 from $52, citing a balanced risk-reward profile due to the stock's recent outperformance [1][5]. - Bank of America raised its price target on Alcoa to $38 from $33 while maintaining an Underperform rating, reflecting higher estimates following Alcoa's Q4 2025 results [2]. - BMO Capital lowered its price target on Alcoa to $65 from $67 with a Market Perform rating, noting that the Q4 earnings beat was influenced by a one-time CO2 credit [3]. Group 2: Company Overview - Alcoa Corporation operates in the bauxite mining, alumina refining, aluminum production, and energy generation sectors across multiple countries including Australia, Brazil, Canada, Iceland, Norway, Spain, and the US [5]. - The company is divided into two segments: Alumina and Aluminum [5].