UPDATE: Sterne Agee Initiates Kaiser Aluminum at Neutral; Headwinds Offset Intrinsic Value For Now

Sterne Agee initiated Kaiser Aluminum KALU with a Neutral rating. Sterne Agee commented, "KALU maintains significant intrinsic value given exposure to a 20% aerospace OEM production rate increase, increasing content on automotive designs and $780 million of NOLs. These NOLs provide above-average FCF which the company reinvests in M&A, capacity expansions and buy-backs. Given industrial headwinds in 1H13 we look to get constructive as demand improves or M&A/capacity expansion enables NOLs, and thus, changes the outlook." Kaiser Aluminum closed at $61.79 on Tuesday.