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Monday, Oct 21
Kaiser Aluminum suffers two downgrades, shares -3.5%
- Kaiser Aluminum (KALU -3.5%) is downgraded to Hold from Buy at two firms which cite the company's lackluster Q3 report and the lack of catalysts for the stock over the next six months.
- KeyBanc points to a combination of emerging spot pricing weakness for aluminum plate products, lack of near-term stabilization in non-plate aerospace de-stocking, and a lag time associated with benefits from de-bottlenecking investments.
- Sterne Agee says while overhangs in the plate/non-plate markets are expected to abate in 2014 as aerospace original equipment manufacturer build rates increased, non-plate trends no longer support such an engagement and an intensifying aerospace plate overhang will continue through 2014.