Century Aluminum Positioned to Deliver Near-Term Volume Growth, UBS Says

MT Newswires Live00:49

Century Aluminum (CENX) is positioned to deliver near-term volume growth through capacity restarts into a sustainably higher US pricing environment, supported by 50% S232 tariffs under the Trade Expansion Act, UBS said in a Monday research report.

The brokerage said it expects robust free cash flow, with the company moving to net cash by Q3, analysts wrote.

The company offers the best leverage to the Mid West Premium, and elevated MWP is sustainable, assuming no changes to the S232 tariffs, according to the note.

The company's joint venture with Emirates Global Aluminium to build an aluminum smelter in Inola, Oklahoma, could drive transformational volume growth, according to UBS.

The brokerage said it initiated coverage of the stock with a buy rating and a price target of $60 per share.

Price: 52.92, Change: +1.04, Percent Change: +1.99

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