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Century Aluminum Rating Downgraded to Sell
Edited by : AL CIRCLE
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Goldman Sachs downgraded Century Aluminum (NASDAQ: CENX) from Neutral to Sell with a price target of $7.00, saying low aluminum prices continue to weigh on earnings.
"We continue to be negative on aluminum fundamentals and while Century is working on cost reduction strategies through new power purchasing arrangements, most reductions will not be realized until 2014 and beyond, while aluminum prices are expected to be flattish in 2013 and 2014 at $0.93/lb (from $0.92/lb in 2012), and only move up to $0.95 in 2015," the firm comments. "As a highly LME-price sensitive name, we expect CENX will see multiple contraction through the year as aluminum prices remain under pressure."
For an analyst ratings summary and ratings history on Century Aluminum click here. For more ratings news on Century Aluminum click here.
Shares of Century Aluminum closed at $8.86 yesterday, with a 52 week range of $5.52-$11.30.
"We continue to be negative on aluminum fundamentals and while Century is working on cost reduction strategies through new power purchasing arrangements, most reductions will not be realized until 2014 and beyond, while aluminum prices are expected to be flattish in 2013 and 2014 at $0.93/lb (from $0.92/lb in 2012), and only move up to $0.95 in 2015," the firm comments. "As a highly LME-price sensitive name, we expect CENX will see multiple contraction through the year as aluminum prices remain under pressure."
For an analyst ratings summary and ratings history on Century Aluminum click here. For more ratings news on Century Aluminum click here.
Shares of Century Aluminum closed at $8.86 yesterday, with a 52 week range of $5.52-$11.30.
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