Deutsche Bank on Constellium (CSTM): 'We remain a buyer of CSTM, viewing the stock undervalued'

Deutsche Bank analyst Corinne Blanchard reiterated a Buy rating and $20.00 price target on Constellium (NYSE: CSTM).

The analyst comments "We remain a buyer of CSTM, viewing the stock undervalued relative to the end-markets in which it operates. We are aware of several idiosyncratic and industry headwinds, but believe all in all, the stock trades at a discount relative to a fair fundamental valuation and continue to represent a buying opportunity at current pricing. Mid-term contract renegotiation to benefit into 2026 along with favorable Aerospace pricing and mix: CSTM's 2Q25 A&T adj. EBITDA margin of $1,467/t surpassed DBe. Furthermore, Management recently increased its mid-cycle target to $1,100/t from $1,000t prior during 2Q. Demand in military and aerospace also appears quite healthy, though commercial backlog still appears elevated at Airbus based on our conversations. Tariffs environment could deteriorate demand: On June 3rd , President Trump increased Section 232 Tariffs to 50% from 25% (link to White House PR). While this no doubt creates short-term benefits for the company, it could however deteriorate end-market demand as some customers substitute aluminum for less tariffed materials. Additionally, the company now expects a $27m impact of tariffs (pre-mitigation) under the 50% regime."

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

Shares of Constellium closed at $15.24 yesterday.

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