B.Riley FBR analyst Lucas Pipes maintained a Buy rating on Century Aluminum (CENX) today and set a price target of $15. The company’s shares opened today at $8.39, close to its 52-week low of $6.54.
Pipes observed:
“We are adjusting our estimates for Century Aluminum (CENX—Buy, $15 PT) to reflect our updated long-term price deck. We are now modeling a 2019 LME aluminum price of $1,871/ Mt (previously 1,949/Mt) and alumina prices of $393/Mt (previously 398/Mt). Note our pricing deck for aluminum assumes a 30-day lag and our price for alumina assume a 60-day lag. As a result of the following changes, our FY2019 estimate has been lowered from $175.7M to $120M, which is primarily driven by a lower aluminum price assumption long-term. In light of these updates, we are maintaining our Buy rating but lowering our price target from $19 to $15 for Century.”
According to TipRanks.com, Pipes is a 1-star analyst with an average return of -1.8% and a 43.1% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Covia Holdings Corporation, and Hallador Energy Company.
Century Aluminum has an analyst consensus of Moderate Buy, with a price target consensus of $12.20.
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Based on Century Aluminum’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $20.3 million. In comparison, last year the company had a net profit of $32.96 million.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CENX in relation to earlier this year.
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Century Aluminum Co. is a producer of aluminum and operates aluminum reduction facilities producer of primary aluminum and operates aluminum reduction facilities, or smelters, in the United States and Iceland. Its products include standard ingots, T-ingot, extrusion billet, horizontal direct chill ingot, molten, slab, and sow.
