June 21, 2018 / 2:58 PM / 6 months ago

BUZZ-Alcoa and Century Aluminum: two sides of tariff coin - B Riley

** Shares of Century Aluminum Co were up 7 pct while rival Alcoa Corp edged down >1 pct early Thurs after B Riley initiates coverage of the aluminum producers

** Broker rates CENX “buy” and AA “neutral”

** In separate notes, lead analyst Lucas Pipes writes that while CENX has been a vocal advocate of U.S. aluminum tariffs, AA, which produces a large percentage of the base metal in Canada, is actively against them

** Sees CENX planned increase of U.S. production as supportive of favorable growth profile

** As for AA, Pipes believes benefits from higher alumina prices are unsustainable, outpoints co’s aggressive expenditures toward legacy liabilities and pension obligations

** On Mar 1, President Donald Trump announced U.S. would impose steep tariffs on steel, aluminum imports

** Since that announcement, AA shares have been essentially flat, while CENX has dropped >22 pct (graphic: tmsnrt.rs/2trrJyd) (Reporting by Stephen Culp)

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