Ord Minnett notes commodity prices have been less volatile so far in 2023. Generally, lower commodity prices are being offset by a weaker Australian dollar. For AWAC, operating issues are envisaged limiting the benefit of any improvement in alumina prices.

At current prices the broker considers Alumina Ltd shares are overvalued, yet with slightly higher short-term alumina price forecasts the target is raised by 8% to $1.30. Lighten rating maintained.

Sector: Materials.

Target price is $1.30.Current Price is $1.52. Difference: ($0.22) - (brackets indicate current price is over target). If AWC meets the Ord Minnett target it will return approximately -17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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