Investing.com -- BMO Capital Markets upgraded Century Aluminum Company (NASDAQ:CENX) to "Outperform" from "Market Perform" given its favourable valuation following a recent sell-off and the company's strong positioning amid rising aluminum prices and tariffs.
Century is the largest primary aluminum producer in the U.S. and is set to benefit from the upcoming increase in Section 232 aluminum tariffs to 25% from 10%. BMO noted that the Midwest Aluminum Premium (MWP) has already risen to around $0.40/lb from the low $0.20s in January, potentially adding millions to its EBITDA estimate. The brokerage sees further upside if the MWP jumps more.
The ongoing strategic review of Century's idled Hawesville smelter, with potential outcomes including a sale or restart, which could generate upto $250 million in EBITDA at current aluminum prices. Additionally, the firm pointed to increasing shareholder return potential as Century approaches its liquidity and net debt targets.
Century shares are trading at 5.6x and 5.3x BMO’s 2025 and 2026 EBITDA estimates, and below 4.0x on a spot basis, reinforcing the firm's view that the market is underappreciating the company’s earnings potential.
Related Articles
Century Aluminum “well positioned” to benefit from tariffs, BMO upgrades stock
MongoDB acquires Voyage AI to boost AI-powered application capabilities
Trump urges Putin and Zelenskiy to collaborate for peace deal
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。