UPDATE: JP Morgan Initiates Constellium at Overweight on on Peer-Leading R&D

In a report published on Tuesday, JP Morgan analyst Michael Gambardella initiated coverage on Constellium CSTM at an Overweight rating with price target at $20.00. In the report, JP Morgan noted, "The company is a global leader in high value, semi- fabricated aluminum products in packaging, automotive, aerospace, and industrial end markets with limited exposure to underlying metal prices. The previous owners invested steadily in Constellium, maintaining its R&D advantage while improving operations and product mix. These strengths should help close the relative valuation gap versus Kaiser Aluminum, its primary comp. We expect key plant expansions, progress toward the 1st A350 delivery, and potential announcements for a new Boeing LTA and aluminum auto body sheet facility in North America to be positive catalysts." Constellium opened on Tuesday at $16.40.