0135 GMT - Alcoa's acquisition of South32's bauxite, alumina and aluminum assets makes strategic and economic sense, Jefferies says. The bank thinks there is a risk Alcoa will issue equity to pay down debt after the deal closes, although that isn't management's base-case plan, Jefferies says. Still, that could be a temporary overhang on Alcoa shares, it says. As could the risk of South32 shareholders and South32 itself potentially selling Alcoa shares they receive as part of the sale, says the bank. "But we believe this deal will create value for Alcoa shareholders in the longer term," it says. Jefferies has a buy rating and $100.00 target on Alcoa. Shares ended Tuesday at $52.14. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

(END) Dow Jones Newswires

June 30, 2026 21:35 ET (01:35 GMT)

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