Monday, December 20, 2010

Goldman (NYSE:GS) Initiates Coverage on Century Aluminum (NASDAQ:CENX)

Goldman Sachs (NYSE:GS) has launched coverage on Century Aluminum (NASDAQ:CENX), starting them off with a "Sell" rating and a price target of $14 a share.

Reasons for the "Sell" rating were the strong leverage Century has in aluminum, and the loss of the power contract refund they were able to implement in 2010.

The ongoing weakness in supply and demand fundamentals was also a key reason, and aluminum prices in 2011 aren't expected to do much at all to help those heavily exposed to the metal.

Century Aluminum closed Friday at $16.11, down $0.02, or 0.12 percent.

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