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Shares in Alcoa Corporation (ASX: AAI) have charged more than 7% higher on no news of note.
UBS upgraded Alcoa to 'Buy' due to Middle East conflict causing over three million tonnes supply disruption.
KEY POINTS
- UBS forecasts aluminium prices to stay above $3,000 per tonne over the next 1-2 years.
- Alcoa could initiate share buybacks in 2H26 if net debt falls below US$1–1.5 billion.
- Alcoa is in advanced negotiations to sell its idle Massena East smelter to NYDIG, potentially accelerating cash returns.
- UBS projects Alcoa's net debt could drop below US$500 million by end of 2026.
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