Fly News Breaks for November 8, 2019
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.
News For ALB From the Last 2 Days
Feb 21, 2020 | 08:59 EST
SunTrust analyst James Sheehan raised his price target on Albemarle (ALB) to $90 after its in-line Q4 results, with the subsequent rise in its stock price reflecting investor optimism about the long-term prospects for electric vehicle growth as well as hopes that pricing concessions will not be repeated in 2021. The analyst still keeps his Hold rating on the stock however given its 6-month lithium inventory and the implied valuation of its Lithium business at 23-times expected 2020 EBITDA, which is well above that of its peer Livent (LTHM).
Feb 21, 2020 | 08:48 EST
Oppenheimer analyst Colin Rusch maintained an Outperform rating on Albemarle (ALB) and raised his price target on shares to $116 from $86 following the company reaffirming its FY20 guidance. The analyst continues to model "steady unit growth, margin expansion, and flattish lithium prices" as the company implements cost efficiencies. While the low-end of the company's guidance could be tested by the impact of the coronavirus, Rusch believes investors will take a multi-year view on Albemarle. He sees the company benefiting from its top position in the lithium market as the transportation industry moves toward battery and hybrid vehicles on their way to autonomous vehicles.
Feb 21, 2020 | 08:20 EST
Deutsche Bank analyst David Begleiter raised the firm's price target on Albemarle to $96 from $72 and keeps a Hold rating on the shares. The stock rose 5.6% following the company's Q4 release as management's comments that it believed lithium prices had stabilized more than offset a 12% miss in Q4 Lithium EBITDA and a 3% lowering of implied 2020 Lithium EBITDA, Begleiter tells investors in a research note.