Kaiser Aluminum (KALU) Stock Forecast & Price Target

Kaiser Aluminum Corp's positive outlook is supported by the anticipated recovery in its Aerospace/High Strength segment, which contributes significantly to the company's EBITDA and is expected to improve as the long cycle destock concludes and OEM schedules ramp up. Additionally, the aluminum Packaging segment demonstrates strong secular growth, bolstered by the ongoing commissioning of a new higher margin roll coat line, with the first shipments expected in the second quarter of FY25. Overall, these factors indicate a favorable trajectory for revenue and profitability as market conditions improve.

Kaiser Aluminum Corp faces increasing risks that could adversely affect its financial performance, particularly anticipated challenges extending into FY26. The company's automotive segment, which accounts for approximately 9% of sales, is vulnerable to potential tariffs and increased uncertainty, raising concerns about revenue stability. Furthermore, a notable reduction in the price target indicates a shift in financial outlook, emphasizing the growing caution surrounding the company's future profitability.