Alcoa shares got a rating boost from a Jefferies analyst.
Analyst Christopher LaFemina raised her rating on the aluminum producer to buy from hold. LaFemina also hiked his price target to $60 from $52.
LaFemina mentioned that Alcoa is a relative winner because the outlook for aluminum has become more optimistic with the global initiatives for decarbonization gathering steam.
"While the near-term outlook for aluminum is risky as China's economy slows, the longer-term story has become more positive on structural factors," the analyst noted.
"Aluminum is an important metal for decarbonization and will likely continue to take share from steel given its lightness (about one-third the weight of steel) and the fact that it is easily recyclable."
According to LaFemina, China recently becoming a net importer of aluminum as its production growth slows is a critically important structural change to the aluminum markets.
The analyst said that Alcoa is well-positioned to benefit from the improving supply/demand outlook for aluminum.