Wells Fargo says investors should buy Alcoa stock as aluminum prices continue to rise. Analyst Timna Tanners upgraded aluminum miners and smelters to overweight from equal weight. His price target has been raised to $70 from $67, implying a 10.7% upside from Wednesday’s closing price. Alcoa stock outperformed in 2026, soaring 19%. This significantly outpaced the S&P 500’s 7.6% rise at that time. But Tanners believes the strength of the aluminum market is being “underestimated” by investors. 2026 AA YTD Mountain AA “Our upgrades reflect our belief in resilient aluminum price strength, which may exceed our expectations. We also see catalysts from the monetization of idle assets for data center conversions, as management notes several transactions are underway, as well as capital deployment news with strong earnings,” she wrote to clients. Aluminum futures are up more than 15.5% since the beginning of the year and have soared more than 50% in the past 12 months. Profits further deteriorated as the war between the US and Iran put upward pressure on prices and demand. “Our overweight rating reflects our view that aluminum price strength may continue into 2027 due to limited global capacity additions and low global inventories,” Tanners said. The analyst added that a potential sale of Alcoa’s Massena East location could also boost the stock price. Analysts are divided on the stock price. Eight analysts covering Alcoa rate the stock as a “buy” or “strong buy,” according to LSEG data. However, the remaining seven allotted companies maintain or underperform their stock ratings.
