Market Overview

Bank of America Reinstates Buy, $11 Target on Noranda Aluminum

Bank of America reinstates coverage of Noranda Aluminum Holdings (NYSE: NOR) with a Neutral rating and an $11 target price as it thinks it sees the company as best-value play in aluminum.

BofA says, “Of our coverage universe, Noranda's aluminum production ranks lowest on the cost curve in the U.S. and second lowest globally. It is vertically integrated into bauxite and alumina production, which can afford it working capital efficiencies. …The 64% stake still held by private equity sponsor Apollo is an overhang, in our view, but we think it is more than discounted in its low multiple relative to peers. Investors may also worry about single smelter risk, with more potential disruption to operations, but in our view disruption likelihood is low and priced in already. “

NOR closed at $8.78 per share on Friday.

Posted-In: Bank of AmericaAnalyst Color Reiteration Analyst Ratings

 

Related Articles (NOR)

Around the Web, We're Loving...

Get Benzinga's Newsletters