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Fly News Breaks for November 8, 2019
ALB
Nov 8, 2019 | 07:55 EDT
JPMorgan analyst Jeffrey Zekauskas downgraded Albemarle to Underweight from Neutral with a price target of $60, down from $68. The stock closed Thursday up $4.48, or 7%, to $71.39. Albemarle, currently trading at 11.2 times estimated EBITDA for 2020, is overvalued, Zekauskas tells investors in a research note. The growth rate of global electric vehicles is slowing and lithium supply is accelerating, contends the analyst. Prices in the lithium industry have declined sharply due to oversupply conditions, says Zekauskas, who thinks Albemarle's long-term contracts are likely to be renegotiated downward.