02:20 PM EDT, 07/17/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We decrease our 12-month target price by $5 to $32, using an EV/EBITDA of 5.0x our 2026 EBITDA estimate, below peers' average forward EV/EBITDA of 5.8x and AA's three-year average of 6.8x. We think this is warranted because of the headwind from Section 232 tariffs. We lower our 2025 EPS estimate by $0.65 to $3.45 and our 2026 EPS forecast by $0.52 to $2.84. AA posts Q2 adjusted EPS of $0.39 vs $0.16, in line with consensus; sales rose 3.8% Y/Y, beating consensus by 2.3%. While we continue to like AA long term, the headwinds from pricing and from Section 232 tariffs are the driving factors for our downgrade. In the Alumina segment, adjusted EBITDA fell sharply from Q1, as a $525 million sequential drop was due to significantly lower market alumina prices. The Section 232 tariffs on imported aluminum significantly increase costs for AA's Canadian-produced metal. These tariffs (currently 50%) are a direct hit to margins and could cumulatively cost the company over $200 million per quarter if sustained.