Goldman Sachs Reiterates Sell on Century Aluminum Co. on Pressure from Premiums, Low Aluminum Prices

In a report published Tuesday, Goldman Sachs analyst Sal Tharani reiterated a Sell rating and $6.00 price target on Century Aluminum Co. (NASDAQ: CENX [FREE Stock Trend Analysis]).

In the report, Goldman Sachs noted, “The marking to market of aluminum prices had no impact on our 2Q13 EPS estimate for CENX of ($0.14). While one-month lagged aluminum prices were down quarter over quarter ($0.82/lb from $0.84/lb in 2Q13), we believe CENX's earnings will improve sequentially due to the one month benefit from lower power contracts at Hawesville. CENX will also see higher shipment volumes due to a full quarter of production from Sebree. There are no changes to our forward estimates. We maintain our six-month P/E-, EV/EBITDA-, and DCF-based target price of $6.00. We maintain our Sell rating on CENX.”