alcoa will suffer from weaker global growth according to morgan stanley the firm downgraded shares of the aluminum producer to underweight from equal weight wednesday it also lowered its price target on the stock to 33 per share from 43 morgan stanleys new forecast implies about 5 downside from the stocks 3491 close on wednesday shares of alcoa have pulled back more than 23 from the start of the year alcoa is the eighthlargest global producer of aluminum aa ytd mountain alcoa stock has slipped 232 from the start of the year morgan stanley analyst carlos de alba said a slight uptick in chinas services sector isnt enough to ignore sluggish growth while a stronger dollar as well as a fairer valuation for the company will weigh on the stock mining equities may continue their recent move higher on sentiment around china stimulus for a bit longer but we dont think the rally is sustainable de alba said despite being down year to date alcoa shares are up 10 this month that said the global growth outlook remains challenging and will weigh on commodity demand and mining equities de alba added that growth in american metals and mining will only increase at a 29 clip in 2023 and 49 in 2024 while the dollar strengthens which should pressure mining equities relative performance given its traditional negative correlation to the usd we would like to see the equities trade at more attractive valuations andor an acceleration in global growth before turning more optimistic again the analyst noted still the analyst said names in the mining space could benefit as the us moves further in decarbonization efforts and toward renewable energy cnbcs michael bloom contributed to this report