B.Riley FBR Thinks Century Aluminum’s Stock is Going to Recover

By Austin Angelo

B.Riley FBR analyst Lucas Pipes reiterated a Buy rating on Century Aluminum (NASDAQ: CENX) today and set a price target of $27. The company’s shares opened today at $14.50, close to its 52-week low of $12.94.

Pipes noted:

“We are adjusting our numbers for Century Aluminum (CENX) ahead of the company’s 2Q18 earnings release on August 1. With alumina prices continuing to stay strong in the mid-$400s, we are lowering our estimates for the year while also adjusting the lag periods in our model, which increased our 2Q estimate, but decreased our 3Q estimate. Although the name is highly sensitive to changes in commodity prices in the short term, we believe it has the potential for large upside due to the ongoing restarts and a potentially positive outcome at Mt. Holly. On earnings, we are looking forward to hearing more detail on the Hawesville restart and the progress of last two potlines.”

According to TipRanks.com, Pipes is a 4-star analyst with an average return of 7.0% and a 60.5% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Novagold Resources Inc New, and CONSOL Coal Resources LP.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Century Aluminum with a $22.33 average price target.

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Based on Century Aluminum’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $300K. In comparison, last year the company had a net profit of $6.56 million.

Based on the recent corporate insider activity of 29 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.