AA - Why Century Aluminum Stock Is on Fire Today
Century Aluminum (NASDAQ: CENX) stock shot up Monday morning and was trading up 10.1% as of 1:55 p.m. ET. Shares of a rival company just received a massive price target upgrade from an analyst, and some of the reasons behind it are applicable to Century Aluminum as well.
On Monday morning, Argus analyst David Coleman raised his price target on Alcoa (NYSE: AA) from $68 a share to $95 per share, according to TheFly.com. Aside from Alcoa's broad footprint in the aluminum industry and its strengthening balance sheet, Coleman expects the recent developments in China and Russia, as well as rising aluminum prices, to work in the company's favor.
The thing is, rising aluminum prices should benefit Century Aluminum as well, given that it's among the world's largest producers of primary aluminum -- i.e., aluminum produced directly from mined ore.
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Why Century Aluminum Stock Is on Fire Today