UPDATE: Bank Of America Upgrades Century Aluminum Co On Better Global Aluminum Markets Outlook

In a report published Tuesday, Bank of America analyst Timna Tanners upgraded the rating on Century Aluminum Co (NASDAQ: CENX) from Neutral to Buy, and raised the price target from $21.00 to $30.00.

In the report, Bank of America noted, “We are upgrading pure-play aluminum producer CENX to Buy from Neutral as we revise our outlook to a more positive stance on global aluminum markets. A recent retreat in the stock offers an attractive entry point, in our view, and we expect earnings to be revised up near term on mark-to-market aluminum price recovery. We expect CENX swings to $212M net cash as of year-end 2015E from $63M net debt as of year-end 2014E. Recently trimmed power costs at its Sebree and Hawesville smelters have boosted earnings and we raise Midwest premium forecasts for a new 2015E $2.50 EPS and $348M of EBITDA, above consensus at $2.18 and $325M respectively.”

Century Aluminum Co closed on Monday at $23.86.

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