JPMorgan Chase & Co. Upgrades Century Aluminum to Overweight (CENX)
Century Aluminum (NASDAQ:CENX) was upgraded by stock analysts at JPMorgan Chase & Co. from an “underweight” rating to an “overweight” rating in a report issued on Tuesday, TheFlyOnTheWall.com reports. The firm currently has a $13.00 price objective on the stock, up from their previous price objective of $6.00. JPMorgan Chase & Co.’s price objective would indicate a potential upside of 6.21% from the stock’s previous close.
The analysts wrote, “While China should see a 1.5mm tonne surplus this year, the rest of the world should actually have a 1.1mm tonne deficit in 2014,” the report noted. “We believe it is important to split Chinese supply from the rest of the world as we think it is unlikely that China will export a significant amount of primary metal given its 15% export tax and the central government’s redoubled focus on increasing pollution controls and reducing excess industrial capacity. Additionally, the recent ban by Indonesia of bauxite exports could push Chinese primary aluminum costs (and thus prices) higher as China sourced roughly 70% of its bauxite imports from Indonesia during 2008-2011. China began building inventory and diversifying away from Indonesia since 2012 when the country’s export ban and tax increase was originally slated for implementation. Current estimates place Chinese bauxite inventories at roughly one year of demand.”
Century Aluminum (NASDAQ:CENX) traded up 10.07% during mid-day trading on Tuesday, hitting $12.24. The stock had a trading volume of 1,698,310 shares. Century Aluminum has a one year low of $6.26 and a one year high of $11.42. The stock’s 50-day moving average is $9. and its 200-day moving average is $8.99. The company’s market cap is $1.085 billion.
Century Aluminum (NASDAQ:CENX) last announced its earnings results on Monday, November 4th. The company reported ($0.14) EPS for the quarter, beating the Thomson Reuters consensus estimate of ($0.30) by $0.16. The company had revenue of $399.92 million for the quarter, compared to the consensus estimate of $402.70 million. During the same quarter in the previous year, the company posted ($0.14) earnings per share. The company’s revenue for the quarter was up 31.3% on a year-over-year basis. Analysts expect that Century Aluminum will post $-0.75 EPS for the current fiscal year.
Century Aluminum Company (NASDAQ:CENX) is engaged in producing aluminum.
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