Kaiser Aluminum "buy," target price reduced

Analysts at UBS maintain their "buy" rating on Kaiser Aluminum Corporation (ticker: KALU), while reducing their estimates for the company. The target price has been reduced from $100 to $92.

In a research note published this morning, the analysts mention that the company has reported its 1Q EPS and EBITDA short of the consensus. Kaiser Aluminum’s operating margins in the quarter were flat sequentially due to cost pressures, the analysts say. There is low transparency and visibility into the non-aerospace focused fabricated business, UBS adds. The EPS estimates for 2007 and 2008 have been reduced from $3.70 to $3.00 and from $4.60 to $4.23, respectively.