11:25 AM EDT, 04/18/2024 (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 increase our 12-month target by $14 to $28, on an EV/EBITDA of 5.9x our 2025 EBITDA estimate, in line with AA's three-year average forward EV/EBITDA. We decrease our 2024 EPS estimate by $0.58 to a loss of $0.42 and trim 2025's EPS by $0.04 to $2.21. AA posted Q1 adj. loss per share of $0.81 vs. a loss of $0.23, $0.37 below consensus, with a top-line beat of 1.7%. Our upgrade has more to do with the broader aluminum market (with prices up 11% since the beginning of March) than AA's operations (which we still have major concerns about). We think global demand growth for aluminum will be a tailwind (with incremental demand tied to decarbonization) and recent news that the U.S. and U.K. governments will sanction Russian aluminum with an import ban in the U.S. and U.K. is providing a boost to aluminum, with prices hitting 52-week highs. However, AA is facing major challenges with its Alumar restart, the economic viability of its San Ciprian asset, and the long permitting process for bauxite mines in Australia.