UBS sees Century Aluminum as a prime beneficiary of higher U.S. regional premiums backed by 50% Section 232 tariffs.
Century Aluminum (CNEX) rose 0.8% after UBS initiated coverage with a Buy rating and a $60 price target. The firm cited the company’s ability to restart capacity and capitalize on near-term volume growth amid a sustainably higher U.S. pricing environment.
The bullish call follows the enforcement of 50% Section 232 tariffs, which UBS believes will support elevated regional premiums. Century Aluminum’s positioning is seen as unique in leveraging these structural pricing shifts.
Shares edged higher in Tuesday’s session following the initiation, reflecting investor optimism about the company’s growth prospects under current market conditions.