UBS analyst Alex Stansbury upgraded Kaiser Aluminum Corporation (NASDAQ:KALU) to a Buy rating on Monday, raising the firm’s price target from $179 to $184. The upgrade followed a strong second‑quarter of fiscal 2026, where price, volume and product mix contributed approximately $41 million of EBITDA growth, representing a 60 % year‑on‑year increase. Despite the earnings strength, the stock had fallen about 19 % from its August highs, pressured by ongoing USMCA renegotiations, a recent CEO transition, and market concerns over the sustainability of scrap spreads. UBS views the recent sell‑off as an attractive entry point, noting that scrap continues to provide a meaningful tailwind and that underlying fundamentals are improving. The brokerage expects the company’s fiscal 2026 guidance of more than 50 % EBITDA growth to be achievable and projects a 66 % increase, while noting that Kaiser Aluminum’s enterprise‑value to EBITDA multiple has narrowed to roughly 7.5×, down from an industry average of 8.6×. UBS also highlighted continued benefits from investments at the Warrick and Trentwood facilities and the anticipated end of aerospace destocking as aircraft build rates accelerate.
UBS Upgrades Kaiser Aluminum to Buy, $184
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