Alcoa (NYSE:) shares are down more than 6% in premarket trading Thursday following the company’s worse-than-expected Q1 sales report.

Alcoa earned $3.29Billion in its first quarter. This is an increase of 15% YoY, but still below consensus estimates of $3.44Billion. Alcoa reported an adjusted earnings per share of $3.06, which is up from 79c last year but below the consensus estimate of $2.84 per shares.

In the same period, adjusted EBITDA reached $1.07 trillion. That’s an improvement of $521 over the prior year. It was also higher than analyst predictions of $1.04 billion.

The aluminum production was 498,000 mt. This is 9.1% less than the YoY estimate and lower than 526 533.

Wolfe Research analyst Timna Tanners reiterated an Outperform rating and lowered the price target to $102.00 per share (from $105.00) after “light Q1 volumes.” The analyst is still bullish on this commodity stock and sees a buying opportunity amidst an after-hours selloff.

“We would be buyers of any weakness after Q1 results, even as we trim 2022E EBITDA to $4.2B from $4.7B and EPS to $12.25 from $12.80 on lower alumina forecasts and assuming some cost pressure. Aluminium prices are supported well by high global cost and limited supply. We also see strong structural demand support from light-weighting and favorable packaging. Investors seem keen to own miners for a hedge against inflation, and this sector rotation can support valuation, in our view,” Tanners said in a client note.

David Gagliano from BMO, analyst, has lowered his price target to $95.00 per shares (previously $99.00) to take into account incremental cost pressures as well as lower expected bauxite performance.

“Bigger Picture: AA remains well positioned to benefit from higher-for-longer aluminum prices, in our view. But, the rally in AA shares has brought valuations to reasonable levels… hence maintaining the Market Perform,” the analyst wrote.

By Senad Karaahmetovic