UPDATE: Cowen Securities Upgrades Century Aluminum Co. to Buy, Names $13 PT on Potential New Power Contract

In a report published Tuesday, Cowen Securities analyst Anthony B. Rizzuto Jr. upgraded the rating on Century Aluminum Co.

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.