CENX - Century Aluminum cut to Neutral at B. Riley after extended run-up

Century Aluminum ( NASDAQ: CENX ) +1.5% in Wednesday's trading even after B. Riley downgraded shares to Neutral from Buy with a $12 price target, seeing limited upside after the stock has more than doubled since September lows.

With Century Aluminum ( CENX ) trading at 11x consensus 2023 EBITDA estimates, "we believe remaining on the sidelines is currently the most pragmatic approach until there is more clarity on the volume or pricing upside," B. Riley's Lucas Pipes wrote.

Steel industry fundamentals remain relatively strong, given European curtailments and China reopening, but Pipes said this is largely priced in.

"As outlined on the recent earnings call, we also believe sustained lower energy costs serve as a key criterion for the restart of its Hawesville smelter, and overall earnings potential of the company's North American operations," Pipes said.

Century Aluminum ( CENX ) shares have gained 18% since posting Q4 earnings and news that the U.S. will apply a 200% tariff on imports of aluminum and derivative aluminum articles from Russia .

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