Constellium (CSTM) has received a new Buy rating, initiated by UBS analyst, .
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analyst has given his Buy rating due to a combination of factors including structurally higher U.S. used beverage can scrap spreads supported by Section 232 tariffs and Constellium’s strong exposure to this theme through its packaging and automotive rolled products segment. The analyst expects only a gradual easing of these spreads as new can sheet capacity comes online, with the negative impact partly offset by volume gains and a mix shift toward more profitable aerospace and automotive products, leading to projected 2026–27 EBITDA materially above current market expectations.
Despite a substantial year‑to‑date share price increase, the shares still trade below their historical EV/EBITDA multiple and at a notable discount to a key peer, suggesting the market is not fully reflecting the improved earnings mix and sustained scrap margin benefits. The report also highlights conservative company guidance, scope for upward estimate revisions, robust free‑cash‑flow yields, and rapid deleveraging that should enable larger capital returns from 2027, all supporting a $38 price target and further re‑rating potential over the next 12 months.
In another report released on April 30, Deutsche Bank also maintained a Buy rating on the stock with a $40.00 price target.