Kaiser Aluminum initiated with "hold"

04/17/09 - KeyBanc Capital Markets

NEW YORK, April 17 (newratings.com) - Analysts at KeyBanc Capital Markets initiate coverage of Kaiser Aluminum Corporation (KALU) with a "hold" rating.

In a research note published this morning, the analysts mention that Kaiser Aluminum’s profitability is driven by the company’s raw material and labor cost flexibility and less volatile shipment momentum. The company’s current stock valuation fully reflects the risk reward balance associated with it, the analysts add. The near-term growth in the company’s earnings and shipments is expected to be restricted by the bottoming of industrial production, KeyBanc Capital Markets says.