Wells Fargo analyst Timna Tanners has maintained an Overweight rating on Alcoa while lowering the price target to $71 from $82. The revised target suggests a tempered outlook on the stock's near-term performance despite the positive rating.

Rating and Price Target Changes

The decision to lower the price target comes as the firm reassesses Alcoa's valuation. The Overweight rating indicates that Wells Fargo still expects the stock to outperform the broader market over time.

Alcoa continues to be monitored for its operational performance and market conditions. The new price target of $71 represents a significant adjustment from the previous $82 level.

Statkraft and Alcoa have signed two new power agreements to secure electricity supply for Alcoa's aluminium plant at Lista, Norway. The agreements cover deliveries of approximately 4.8 TWh of electricity during the period 2028–2031, providing a solid and predictable energy foundation for the smelter and supporting continued production and development at the site.

Production Line 2 at Lista recently completed a successful restart of 31,000 metric tonnes per annum, reaching the plant's nameplate capacity of 95,000 metric tonnes. This milestone restored capacity and strengthened Alcoa's industrial presence in Norway. Access to reliable and competitively priced power is essential for maintaining these operations.

"Restarting operations at Lista was an important milestone for us, and access to stable power is absolutely essential for taking the next step," says Tor Arne Berg, Operations Manager at Alcoa Lista.

The agreements underscore the importance of predictable regulatory frameworks and long-term power access for Norwegian industry, particularly for power-intensive sectors like aluminium production. Hallvard Granheim, Executive Vice President Markets at Statkraft, emphasized the company's commitment to supporting regional value creation through competitive power prices and continued cooperation.

"Alcoa is the latest of several large industrial companies to enter into new long-term power agreements with Statkraft this year. The demand confirms that the power market is functioning well and that we deliver competitive terms and power supply in line with industry needs," Granheim adds.

Key Agreement Details

The deals form part of Alcoa's long-term strategy to secure stable power prices on commercial terms for its Norwegian operations. Statkraft, Europe's largest generator of renewable energy, continues to expand its supply contracts and development plans in Southwest Norway (NO2).