Alcoa will deploy technology improvements to reduce its capital expenditure and carbon intensity. Macquarie suggests the long-term earnings outlook has improved after incorporating updated AWAC production guidance.

The broker upgrades to Outperform from Neutral because of an improved earnings outlook and the potential for cash returns in the short term. Target is raised to $2.00 from $1.90. 

Sector: Materials.

Target price is $2.00.Current Price is $1.88. Difference: $0.12 - (brackets indicate current price is over target). If AWC meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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