Constellium: Interesting, But Too Expensive For A Play In Aluminum

Constellium SE is rated Hold due to valuation concerns, forecast volatility, and lack of dividend yield. CSTM's fundamentals are overshadowed by cyclical end-market exposure, unreliable forecasts, and a BB credit rating, making it less attractive than peers. Recent earnings strength is driven by non-recurring items and aerospace, with core automotive and packaging segments showing only low single-digit growth. My fair value target is $16.5/share, reflecting a conservative 10-11x P/E, below current levels and peer multiples.