Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Deutsche Bank has reiterated its Buy rating on Constellium (NYSE:CSTM) with a price target of $20.00, citing the stock as undervalued relative to its operating markets despite facing various headwinds. This assessment aligns with InvestingPro data, which indicates the stock is currently trading below its Fair Value, with shares at $15.24 showing remarkable year-to-date gains of 48%.
The bank’s analysis points to Constellium’s second-quarter 2025 Aerospace & Transportation adjusted EBITDA margin of $1,467 per ton, which exceeded Deutsche Bank’s estimates. Management has also increased its mid-cycle target to $1,100 per ton from the previous $1,000 per ton during the second quarter.
Deutsche Bank notes that demand in military and aerospace sectors appears healthy, though commercial backlog at Airbus remains elevated based on the bank’s industry conversations.
The tariff environment presents both opportunities and challenges for Constellium. On June 3, President Trump increased Section 232 Tariffs to 50% from 25%, creating short-term benefits for the company while potentially deteriorating end-market demand as customers might substitute aluminum for less tariffed materials.
Constellium now expects a $27 million impact from tariffs under the 50% regime before any mitigation efforts, according to Deutsche Bank’s analysis.
In other recent news, Constellium NV reported its second-quarter earnings for 2025, showcasing a revenue of 2.1 billion USD, which exceeded the forecast of 1.76 billion USD by 19.32%. However, the company’s earnings per share (EPS) fell slightly short of expectations, recording 0.25 USD against the anticipated 0.26 USD. Additionally, Constellium announced the extension of its long-term partnership with Embraer to supply high-performance aluminum solutions, including its aluminum-lithium alloy, Airware. This agreement will cover Embraer’s Commercial Aviation, Executive Jets, and Defense & Security divisions. The financial terms and duration of this partnership extension remain undisclosed. These developments are part of Constellium’s recent activities in the market.
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