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Service Stream Ltd (ASX: SSM) and Alcoa Corp (ASX: AAI)

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Question asked 27/06/2026

Service Stream Ltd (ASX: SSM) and Alcoa Corp (ASX: AAI)

Hi Market Matters Team Could I have your current view on SSM - It reached a YTD High of $2.71 this week. This is one I'm looking to sell - do u see further upside? Would u continue to hold or sell SSM into this strength? I know you have S32 for aluminium exposure But if u held Alcoa would you hold until the aluminium prices improve? They both peaked in early June with the affects of the war on supply. Do you expect AAI to reach that level again? regards Debbie

Answer

Hi Debbie,

As a reminder, Service Stream (SSM) is an Australian infrastructure services contractor that builds and maintains utility networks, electricity, gas, water, and telecommunications, on behalf of regulated network owners and government clients.

We like SSM but can understand you considering selling the stock after its 5-fold appreciation from its 2023 low. The stock has enjoyed the same tailwinds as the likes of Ventia Services and Downer Group

We can see SSM testing $3 this year but if we had been long for the recent appreciation, it would be tempting to at least trim the position, given it’s now stretched from a valuation perspective.

Alcoa (AAI) and South32 (S32) are both highly correlated miners hence by definition MM buying S32 this week, targeting an eventual break above $5, a new 2026 high, is indicative of our bullish read through towards AAI after its sharp ~36% correction.

We are bullish towards AAI and can see a test of $115-120 through 2026/7.

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Service Stream Ltd (SSM)

LAST UPDATED 26/06/2026 12:23

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