In a report released today, Josh Sullivan from Benchmark Co. maintained a Buy rating on Kaiser Aluminum (KALU – Research Report), with a price target of $74.00.
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Josh Sullivan has given his Buy rating due to a combination of factors influencing Kaiser Aluminum’s market position. Despite a reduction in the price target to $74, the company’s Aerospace/High Strength segment, which contributes significantly to EBITDA, is anticipated to recover as the destocking cycle concludes and OEM schedules improve, albeit with some risks extending into FY26.
Additionally, while the automotive segment faces potential tariff-related uncertainties, the General Engineering segment is poised to benefit from long-term reshoring efforts and reduced import competition. The Packaging segment stands out with strong growth prospects, supported by the commissioning of a new higher margin roll coat line, expected to enhance profitability as it reaches full capacity in the latter half of FY25.