The company, which is engaged in lightweight metals, products and solutions for various industries including automotive, building and construction, has successfully transformed its image, analysts said.
"Within the past five years, Alcoa has transformed its image from an upstream heavy aluminum pure play to a diversified manufacturer/supplier of light metals mainly to the transportation and aerospace industries," analysts added.
"Looking ahead, we believe the upstream segments are poised for a sharp recovery while the downstream gains continue. As a result, we believe Alcoa is positioned to deliver meaningful earnings/EBITDA growth or nearly 90% over the next three years," analysts said.
Shares of Alcoa closed down 0.71% at 16.83 yesterday.
Separately, TheStreet Ratings team rates ALCOA INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALCOA INC (AA) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."