UPDATE: Citigroup Initiates Constellium at Buy on Multiple Positive Factors

In a report published Tuesday, Citigroup analyst Jonathan Sullivan initiated coverage on Constellium CSTM with a Buy rating and $23.00 price target.

In the report, Citigroup noted, “We are initiating coverage of Constellium (CSTM), a producer of rolled and extruded aluminum products, with a $23/sh target price and a Buy (1) rating. Constellium provides investors with attractive exposure to the aerospace and automotive markets and limited LME aluminum price risk given the company's LTAs and hedging policies. The lower growth packaging segment should serve as a stable source of profitability and cash flow during periods of macroeconomic weakness. CSTM's turnaround at the Ravenswood facility has also significantly improved the company's earnings power.”

Constellium closed on Monday at $17.10.