CENX - Century Aluminum -10% after BMO slashes price target on higher costs
Century Aluminum (NASDAQ:CENX) slumps to an 11-week low in Friday's trading after BMO cut its stock price target to $24 from $32, citing higher ongoing costs, while maintaining a Market perform rating. Given BMO's "tepid" outlook on aluminum prices and Century Aluminum's (CENX) high sensitivity to small changes in aluminum prices, analyst David Gagliano sees the stock as fairly valued. The company's Q2 EBITDA target of $120M-$130M is "meaningfully below" BMO's estimate as "incremental cost pressures and increased operating costs bite into expectations," Gagliano said. Century Aluminum (CENX) reported Q1 earnings after Thursday's market close, swinging to adjusted EPS of $0.59 from a year-earlier loss of $0.54.
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Century Aluminum -10% after BMO slashes price target on higher costs