Century Aluminum initiated with a Buy at Texas Capital

Texas Capital initiated coverage of Century Aluminum (CENX) with a Buy rating and $42 price target Century operates a portfolio of four primary aluminum smelters with total nameplate capacity, not including Hawesville, of roughly 770K Mt, making it the largest primary aluminum producer in the U.S., the analyst says. Government initiatives aimed at supporting U.S. aluminum production, including Section 232 tariffs and 45X tax credits, as well as the company’s investment in value-added aluminum products, position the company well for earnings growth over the coming years, the analyst contends.