UPDATE: Deutsche Bank Reinstates Coverage on Constellium NV Following Completion of Secondary Offering

In a report published Friday, Deutsche Bank analyst Greg Poole reinstated coverage on Constellium NV CSTM with a Buy rating and $25.00 price target, up from $23.00. In the report, Deutsche Bank noted, “We are reinstating CSTM coverage with a Buy after it completed a secondary offering. CSTM shares have risen nicely since the deal & it recently announced b-t-e 3Q results & 4Q outlook that lead us to raise ests. Certain industry issues (invs, premia) continue to have muted impacts on CSTM given contract wins, cost efficiency & market growth elsewhere & we believe it will gain add'l share with key OEMs including in aero. Also, leverage continues to fall & we expect CSTM to institute a dividend in coming months. CSTM remains a Buy given asset positioning, market exposures, debt reduction potential, structural/cyclical earnings growth & valuation. PT = $25 (was $23).” Constellium NV closed on Thursday at $21.44.