Goldman Sachs Reiterates Sell on Century Aluminum Co. on Pressure from Premiums, Low Aluminum Prices

In a report published Tuesday, Goldman Sachs analyst Sal Tharani reiterated a Sell rating and $6.00 price target on Century Aluminum Co. CENX. In the report, Goldman Sachs noted, “The marking to market of aluminum prices had no impact on our 2Q13 EPS estimate for CENX of ($0.14). While one-month lagged aluminum prices were down quarter over quarter ($0.82/lb from $0.84/lb in 2Q13), we believe CENX's earnings will improve sequentially due to the one month benefit from lower power contracts at Hawesville. CENX will also see higher shipment volumes due to a full quarter of production from Sebree. There are no changes to our forward estimates. We maintain our six-month P/E-, EV/EBITDA-, and DCF-based target price of $6.00. We maintain our Sell rating on CENX.” Century Aluminum Co. closed on Monday at $7.95.