CSTM - Constellium: Solid Fundamentals And Attractive Valuation Despite Macro Headwinds
2024-01-29 12:51:24 ET
Summary
- Constellium is a well-managed specialty metals company specializing in high-margin aluminum structures.
- Despite inflationary and macroeconomic pressures on its end markets, we anticipate CSTM to report in line Q4-2023 and FY-2023 results.
- We anticipate strong free cash flow generation and year-end net leverage dropping below 2.5x to persuade the board to authorize a share repurchase program.
- At 7x our 2024 adjusted EBITDA estimate, CSTM would trade at $27, representing 40% upside.
Introduction
This is our third article about Constellium SE ( CSTM ) for these reasons: (1) to preview Q4-23 earnings and (2) to update our investment thesis....
Constellium: Solid Fundamentals And Attractive Valuation, Despite Macro Headwinds