Century Aluminum drops over 10 pct after Q4 net loss

* Stock sags after missing estimates

* Analysts lower views

NEW YORK, Feb 24 (Reuters) - Shares of Century Aluminum  slumped over 10 percent on Wednesday after the company missed Wall Street estimates and posted a fourth-quarter net loss.

Dahlman Rose & Co lowered the company's earnings estimates for this year and next and cut the share price target to $17 from $20. BMO cut its target from $17 to $13 a day after the aluminum producer said that despite some market improvement, aluminum inventories are still too high.

In morning trading on the Nasdaq, Century Aluminum stock was down $1.30, or 10.2 percent, at $11.44.

In a research note, Dahlman Rose analyst Anthony Rizzuto said he expected the company's earnings to remain leveraged to the price of aluminum.

He reduced his 2010 earnings estimate to 50 cents per share from $1.80 and the 2011 estimate to $2.00 from $2.90 per share. Analysts currently expect 2010 earnings of $1.04 in 2010 and 83 cents per share in 2011, according to Thomson Reuters I/B/E/S.

"We do see potential upside if Century Aluminum can get favorable terms in its power and labor contract negotiations," Rizzuto wrote. In the long-term, he said the company will benefit from its low-cost Iceland smelting operations.

"We like the leverage the company exhibits toward aluminum prices and given the company's cost structure and growth opportunities, we believe that the shares exhibit an attractive risk/reward profile."

(Reporting by Steve James, editing by Dave Zimmerman)