Sean Gallup/Getty Images News

Sean Gallup/Getty Images News

Alcoa (AA) -16% in Thursday's trading, giving up a month's worth of gains, after reporting a surprise miss on Q1 revenues and forecasting aluminum demand this year will grow by ~2%, compared to a prior forecast of 2%-3%.

In reaction to the disappointing results, Citi downgraded Alcoa (AA) shares to Neutral from Buy with an unchanged $84 price target, as the bank's global commodity team said it is "stepping off the aluminum bull train."

"Aluminum - and by extension AA - remain one of our best long-term ideas in metals but the near-term risk reward is more balanced" following a two-year rally, Citi's Alexander Hacking wrote, adding Chinese smelter restarts and softer demand could put a near-term cap on the price.

BMO Capital's David Gagliano trimmed his price target to $95 from $99 to reflect incremental cost pressures and lower expected bauxite results.

Wolfe Research analyst Timna Tanners remained bullish on Alcoa (AA) sees a buying opportunity amid the current selloff, reiterating an Outperform rating but lowered the price target to $102 from $105 after "light Q1 volumes," as aluminum production fell 9% Y/Y to 498K metric tons, below estimates of 526K tons.

B. Riley keeps its Neutral rating while cutting its PT to $84 from $91 on "greater working capital use and a revised long-term sustaining capital assumption."

Earlier this month, Credit Suisse downgraded the stock, saying aluminum prices have neared peak levels and likely will gradually rebalance in this year's H2.