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Fly News Breaks for August 14, 2019
ALB
Aug 14, 2019 | 10:42 EDT
Vertical Group analyst James Bardowski lowered his price target for Albemarle to $39.80 from $58.50 citing growth concerns following the company's decision to shelve ~47% of its previously planned lithium conversion capacity. The "abrupt change" in capacity plans away from "higher-value" lithium hydroxide will leave Albemarle "significantly more" levered to its spodumene mines in Australia, Bardowski told investors earlier in a research note. Further, the analyst points out that his work suggests spodumene is currently the most oversupplied segment of the lithium market. As such, he believes the company's decision implies lower future earnings potential. The analyst keeps a Sell rating on shares of Albemarle, whose stock is down 4% to $65.99 in early trading.