Kaiser Aluminum (NASDAQ:KALU) Cut to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Kaiser Aluminum from “strong buy” to “buy.” Analyst sentiment is mixed, with four Buy, two Hold, and one Sell rating, resulting in a consensus “Hold” rating and $162.40 target price.
• Kaiser Aluminum reported quarterly revenue of $1.21 billion, up 43.9% year over year, but EPS of $1.89 missed the $2.37 analyst estimate. Higher metal costs and operational disruptions continue to pressure profitability.
• The stock opened at $107.28, well below its 52-week high of $199.89, while management cited stronger aerospace demand and improving cash flow as potential longer-term growth drivers.

Kaiser Aluminum (NASDAQ:KALU - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Saturday, Wall Street Zen reports.

Several other analysts have also recently issued reports on KALU. Weiss Ratings cut shares of Kaiser Aluminum from a "buy (b)" rating to a "buy (b-)" rating in a research note on Wednesday, September 2nd. Wells Fargo & Company dropped their price objective on Kaiser Aluminum from $160.00 to $125.00 and set an "equal weight" rating for the company in a report on Friday. UBS Group raised Kaiser Aluminum from a "neutral" rating to a "buy" rating and increased their target price for the stock from $179.00 to $184.00 in a research report on Monday, August 31st. KeyCorp reduced their target price on Kaiser Aluminum from $183.00 to $181.00 and set an "overweight" rating on the stock in a report on Thursday, October 8th. Finally, Barclays began coverage on Kaiser Aluminum in a research report on Wednesday, October 14th. They set an "overweight" rating and a $180.00 price target for the company. Four research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Kaiser Aluminum currently has a consensus rating of "Hold" and a consensus target price of $162.40.

Kaiser Aluminum Price Performance

KALU opened at $107.28 on Friday. Kaiser Aluminum has a 1 year low of $87.89 and a 1 year high of $199.89. The company's 50 day simple moving average is $153.33 and its 200 day simple moving average is $164.82. The stock has a market capitalization of $1.75 billion, a PE ratio of 8.28 and a beta of 1.59. The company has a debt-to-equity ratio of 1.06, a quick ratio of 1.17 and a current ratio of 2.63.

Kaiser Aluminum (NASDAQ:KALU - Get Free Report) last issued its quarterly earnings results on Wednesday, October 21st. The industrial products company reported $1.89 EPS for the quarter, missing the consensus estimate of $2.37 by ($0.48). Kaiser Aluminum had a return on equity of 23.65% and a net margin of 4.85%. The company had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.21 billion. During the same period last year, the company posted $1.86 EPS. The business's revenue for the quarter was up 43.9% on a year-over-year basis. As a group, sell-side analysts expect that Kaiser Aluminum will post 13.40 EPS for the current year.

Hedge Funds Weigh In On Kaiser Aluminum

Institutional investors and hedge funds have recently bought and sold shares of the stock. Allworth Financial LP increased its stake in Kaiser Aluminum by 146.6% during the 2nd quarter. Allworth Financial LP now owns 143 shares of the industrial products company's stock worth $28,000 after buying an additional 85 shares during the period. Nykredit A S acquired a new position in Kaiser Aluminum in the second quarter worth about $30,000. Signaturefd LLC increased its holdings in Kaiser Aluminum by 228.0% in the third quarter. Signaturefd LLC now owns 269 shares of the industrial products company's stock valued at $39,000 after buying an additional 187 shares during the last quarter. KBC Group NV bought a new stake in Kaiser Aluminum in the first quarter valued at about $44,000. Finally, Farther Finance Advisors LLC increased its holdings in Kaiser Aluminum by 32.5% in the third quarter. Farther Finance Advisors LLC now owns 400 shares of the industrial products company's stock valued at $58,000 after buying an additional 98 shares during the last quarter. Hedge funds and other institutional investors own 99.29% of the company's stock.

Key Stories Impacting Kaiser Aluminum

Here are the key news stories impacting Kaiser Aluminum this week:

• Positive Sentiment: Management highlighted stronger aerospace demand, rising cash flow and better visibility into 2027. These trends could support future revenue growth and profitability as current operational issues are addressed. KALU Q3 Earnings Call Highlights Demand Strength and Margin Pressure
• Positive Sentiment: An analysis argues that Kaiser Aluminum shares could be approximately 43% undervalued, offering potential upside if earnings improve and the company executes on its longer-term growth plans. Kaiser Aluminum Stock Could Be 43% Undervalued As CEO Transition Looms
• Neutral Sentiment: Kaiser reported third-quarter revenue of approximately $1.21 billion, up 43.9% year over year, while adjusted earnings increased to $1.89 per share from $1.86 a year earlier. Revenue growth is encouraging, but profitability did not meet expectations. Kaiser Aluminum Q3 Adjusted Earnings and Revenue Rise
• Negative Sentiment: Third-quarter EPS of $1.89 missed the Zacks consensus estimate of $2.08, reinforcing concerns that higher metal costs and operational disruptions are squeezing margins despite solid demand. Kaiser Aluminum Misses Q3 Earnings Estimates
• Negative Sentiment: Wells Fargo lowered its price target from $160 to $125 and maintained an “equal weight” rating. The reduced target signals less near-term confidence, while the pending CEO transition adds execution uncertainty. Wells Fargo Kaiser Aluminum Analyst Action

Kaiser Aluminum Company Profile

Kaiser Aluminum Corporation is a producer of semi-fabricated aluminum products used by manufacturers in the aerospace and defense, automotive, industrial, and consumer products markets. The company supplies aluminum materials designed for applications that require strength, light weight, corrosion resistance, and other specialized performance characteristics.

Its product portfolio includes rolled aluminum sheet and plate, extruded products, forged components, and other fabricated aluminum products.

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