Albemarle: Wall Street’s Views and Recommendations



Analysts’ consensus

The number of analysts actively covering Albemarle (ALB) stock has increased from 19 to 20 over the previous month. Among the 20 analysts, 50.0% have recommended a “buy” for the stock, and another 50.0% have recommended a “hold.” None of the analysts have recommended a “sell” for the stock.

Analysts’ consensus indicates that Albemarle’s 12-month target price is $123.56, implying a potential return of 8.0% over the closing price of $114.46 as of August 29,2017.

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Analysts are recommending a ‘hold’ or ‘buy’

ALB has posted two quarters of good earnings that beat analysts’ estimate. It has also maintained its guidance at $4.20–$4.40 per share for fiscal 2017. Positive developments such as a reduction in debt and a growing demand for lithium are expected to drive ALB’s future growth. All these factors could have influenced analysts to recommend a “buy” or a “hold” for the stock.

Individual brokerage recommendations

  • Oppenheimer has rated Albemarle an “outperform” with a target price of $133, which implies a potential return of 16.2% over the closing price of $114.46 on August 29, 2017.
  • Deutsche Bank (DB) has rated Albemarle a “buy” and has a target price of $128, implying a potential return of 11.3% over the closing price of $114.46 on August 29, 2017.
  • Suntrust has downgraded Albemarle to a “hold” from a “buy” but did not provide a target price.

Investors can hold Albemarle indirectly by investing in the PowerShares WilderHill Progressive Energy ETF (PUW), which has invested 3.0% of its portfolio in ALB. The other holdings of the fund include FMC (FMC) and Owens Corning (OC) with weights of 3.1% and 2.9%, respectively, as of August 29, 2017.


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