The Chicago-based aluminum company has meaningfully lowered its cost structure and has higher volume growth potential, analysts said.
"Century went on the offensive beginning in 2012, successfully renegotiating all important power contracts and acquiring additional U.S.-based production capacity. As a result, Century now has a meaningfully lower cost structure and higher volume growth potential," analysts said.
"Looking ahead, additional company-specific positive catalysts include the full impact of the cost-savings/volume-growth initiatives starting to flow through results, the potential Ravenswood restart and/or Helguvik project restart, and an upgraded product mix," analysts added.
Shares of Century Aluminum closed down 1.6% to $27.09 yesterday.
Separately, TheStreet Ratings team rates CENTURY ALUMINUM CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CENTURY ALUMINUM CO (CENX) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."