UPDATE: J.P.Morgan Lowers PT on Century Aluminum on Updated Cost Savings Targets
In a report published on Wednesday, J.P. Morgan analyst Michael Gambardella lowered the price target on Century Aluminum (NYSE: CENX) from $9.00 to $8.50 and maintained a Neutral rating on the company.
In the report, Gambardella noted, "The company recently acquired another Kentucky smelter (Sebree) near its Hawesville plant, which in our view increased its chances of improving the power cost profile at both facilities... While the new power rates would improve Century's current cost structure... we do not expect they will be correlated with primary LME aluminum prices which merits a discount given the potential for margin volatility absent any hedging."
Century Aluminum closed Tuesday at $9.85.
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