Deutsche sees lithium pricing pressure coming, cuts Albemarle to Hold
Deutsche Bank analyst David Begleiter downgraded Albemarle to Hold from Buy while raising his price target for the shares to $150 from $130. The developer of highly-engineered specialty chemicals closed yesterday up 3c to $143.37. Following a field trip to China, Begleiter believes new lithium processing capacity is coming, which should begin to pressure prices by 2019. The analyst views Albemarle's valuation as full at current levels. To justify greater than 10% upside from current levels, one would have to pay 23 times 2020 estimated lithium EBITDA, Begleiter tells investors in a research note. He sees the stock as performing in-line over the next 6-12 months after tripling over the past 21 months.