UPDATE: JPMorgan Downgrades Century Aluminum (CENX) to Underweight

December 17, 2013 6:46 AM EST
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Price: $14.31 +4.07%

Rating Summary:
    1 Buy, 11 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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(Updated - December 17, 2013 1:24 PM EST)

JPMorgan downgraded Century Aluminum (NASDAQ: CENX) from Neutral to Underweight with a price target of $6 (from $9). The change follows updated aluminum forecasts of $0.84/lb from $0.89/lb for 2014 and to $0.86/lb from
$0.93/lb for 2015.

"The lower aluminum price deck widened our expected 2014E EPS loss for Century to ($0.79) from ($0.28), partially offset by an increased realized premium over the LME and a richer product mix from the inclusion of Sebree. We also trimmed 4Q13E estimate to ($0.43) from ($0.40) as commodity aluminum prices also track lower than our prior estimate by 3%," said analyst Michael F. Gambardella.

JPMorgan also adjusted estimates for copper, gold, and Iron Ore.

"For copper, their 2014 copper price forecast was lowered to $3.18/lb from $3.30/lb and 2015 to $3.18/lb from $3.40/lb. For gold, their 2014 price forecast went to $1,263/oz from $1,401/oz and 2015 to $1,275/oz from $1,450/oz. In a separate note, J.P. Morgan raised its 2014 iron ore price forecasts to $125/tonne from $115/tonne and 2015 to $110/tonne from $105/tonne as still strong Chinese demand coupled with high marginal cost production from China should continue to support prices," said Gambardella.

Related stocks include Alcoa Inc. (NYSE: AA), Cliffs Natural Resources Inc. (NYSE: CLF), Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX), Teck Resources Limited (NYSE: TCK), and Thompson Creek Metals Company Inc. (NYSE: TC).

For an analyst ratings summary and ratings history on Century Aluminum click here. For more ratings news on Century Aluminum click here.

Shares of Century Aluminum closed at $9.29 yesterday.

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