B.Riley Upgrades Century Aluminum (CENX) to Buy

B.Riley analyst Lucas Pipes upgraded Century Aluminum (NASDAQ: CENX) from Neutral to Buy with a price target of $14.00 (from $10.00).

The analyst comments "We are updating our estimates for Century Aluminum (CENX—Buy, $14 PT) to reflect the impact of the 45X production tax credits. Our price target is increasing from $10 to $14. We previously highlighted CENX (here) as the greatest beneficiary of 45X, thanks to its current operational footprint and opportunities for capacity expansion/restart at Mt. Holly and Hawesville. We view the company’s guidance of $55M-$60M benefits in 2023 as a floor and would note that CENX could realize roughly $200M of annual benefit in the case that material costs are included, and the company achieves 100% utilization in the U.S. We believe the most meaningful near-term catalysts are potential restart announcements, followed by further guidance from the Treasury following the February 22 hearing. We are revising our 4Q23 and 2024 adjusted EBITDA estimates from $6.1M to $10.9M and from $112.4M to $214.4M, respectively. Our revised estimates do not include any benefit from material costs, but we now estimate Mt. Holly would achieve 100% capacity by 1Q 2025 and Hawesville would achieve 50% by 3Q 2025."

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 $10.65 yesterday.

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