UPDATE: Cowen Securities Upgrades Century Aluminum to Buy on Potential New Power Contract
In a report published Tuesday, Cowen Securities analyst Anthony B. Rizzuto Jr. upgraded the rating on Century Aluminum Co. (NASDAQ: CENX) from Hold to Buy, and named a $13.00 price target.
In the report, Rizzuto noted, “Century Aluminum announced a tentative agreement with Kenergy Corp and Big Rivers Electric Corp on the framework of a new power contract that would provide the company's Hawesville smelter with market-priced power. Should the agreement be finalized, the new contract would become effective on Aug 20. Management estimates that the delta between the old rate and market pricing is roughly $225/mt (which equates to roughly $56 MM annually), and that the implied savings would make the facility profitable on an operating basis even at currently depressed LME levels.”
Century Aluminum Co. closed on Monday at $7.56.
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