Update shared on08 Aug 2025
Fair value Increased 13%The upward revision in Century Aluminum’s price target reflects stronger profitability, as evidenced by the notable improvement in net profit margin and a more attractive forward P/E, raising the fair value estimate from $22.50 to $25.50.
What's in the News
- Century Aluminum will restart over 50,000MT of idled production at its Mt. Holly, SC smelter, investing $50 million and creating 100+ new jobs.
- Full production is expected by June 30, 2026, increasing U.S. domestic aluminum production by nearly 10%.
- The restart is attributed to increased Section 232 tariffs on aluminum imports, now at 50%, and supportive energy arrangements with Santee Cooper.
- An agreement in principle extends the current power supply contract through 2031, with final terms pending.
- The Mt. Holly smelter's full capacity operation is projected to contribute over $890 million annually to South Carolina's economy.
Valuation Changes
Summary of Valuation Changes for Century Aluminum
- The Consensus Analyst Price Target has significantly risen from $22.50 to $25.50.
- The Net Profit Margin for Century Aluminum has significantly risen from 11.34% to 13.72%.
- The Future P/E for Century Aluminum has fallen from 8.18x to 7.57x.
Disclaimer
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