In morning trading on the New York Stock Exchange, Alcoa was up 39 cents at $9.82.
But Tony Rizzuto, of Dahlman Rose & Co cut the company's share price target to $14.65 from $17.50, saying he was not convinced that prices would rise this year.
Until the market sees sustained production discipline, we do not believe aluminum prices will move meaningfully higher, he said.
RBC also lowered its price target for Alcoa, to $11.00 from $11.50, but UBS raised the target price to $10.25 from $9.50.
Alcoa stock rose in after-hours trading on Monday, but is still way off its 52-week high of $18.47 last April.
However, bears lightened their positions in the stock during 2011, with only about 2 percent held by short sellers ahead of the earnings, well below the 6 percent short interest in the first quarter last year, according to Data Explorers.
On Monday, Alcoa reported a fourth-quarter loss, citing slumping aluminum prices and announced smelting capacity cuts that it believes will prompt a global deficit and push up metal prices. It also forecast a 7 percent growth in global aluminum demand growth this year, especially in the aerospace and automotive markets.
(Reporting By Steve James)