We have a buy rating on Constellium NV (CSTM). CSTM is best positioned to benefit from a significant exposure to strong and growing aerospace markets, and a material transition in the automotive industry towards aluminum from steel. CSTM not only provides investors with attractive exposure to the aerospace and automotive markets, it also presents investors with limited aluminum price risk with the company's pass-through structure and hedging policies. Moreover, company's leading position in the relatively lower growth but stable and recession-resilient packaging segment serves as a stable source of profitability and cash flow during periods of macroeconomic weakness and limits the volatility of company's earnings through the cycle. As a new public company, CSTM is trading...
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