Alcoa, Steel Dynamics raised to Buy in joining favorite commodity stocks at BofA

Alcoa (NYSE:AA) +1.8% in Tuesday’s trading as Bank of America upgrades shares to Buy from Neutral with a $52 price target, raised from $43, capturing the bank’s bullish aluminum price outlook for 2025-26 thanks to strong global demand and supply constraints.

Alcoa (AA) also should benefit from stronger alumina prices, the precursor to aluminum, and as the largest third-party producer, the company uniquely benefits, analyst Lawson Winder says.

Steel Dynamics (STLD) +2.6% as BofA also upgrades to Buy from Neutral with a $155 PT, up from $140, expecting greater benefit from the Sinton and Aluminum Dynamics projects and a slight increase in the bank’s forecast for 2025 hot-rolled coil prices.

Winder sees Steel Dynamics (STLD) garnering relatively greater benefit from higher HRC and coated steel prices and is unique among peers via its aluminum rolling mill project.

The analyst also cuts Franco-Nevada (FNV) to Neutral from Buy with a $139 PT, trimmed from $142, citing the stock’s full valuation and now lower than average growth vs. peers.

BofA’s other favorite commodity stocks include Freeport McMoRan (FCX) in copper, Cameco (CCJ) in uranium, Commercial Metals (CMC) in steel, and Agnico Eagle Mines (AEM) and Pan American Silver (PAAS) in precious metals.