Dahlman Rose Reiterates Hold Rating on Century Aluminum (CENX)

Dahlman Rose is out with a research report this afternoon, where it reiterates its Hold rating on Century Aluminum CENX. The DR analysts noted that CENX's recently quarterly results were above the consensus estimate on higher revenues, as the company's US production and the realized tolling price in Iceland exceeded estimates. The analysts also noted that gross margin expanded slightly despite rising power cost. As for valuation, the analysts remarked, “We are raising our 2011 EPS estimate to $1.15 from $1.00, to reflect management's increased shipment guidance due to a restart of smelter capacity. We are also raising our 2012 EPS estimate to $2.10 from $1.85 to account for the increased capacity coming online, which is expected to lower marginal cost and boost margins.”