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Wall Street Talks: Albemarle’s Target Prices by Analyst

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Analysts’ consensus on Albemarle

As of November 28, 2017, the number of analysts following Albemarle (ALB) stock has increased from 20 analysts to 21. Among them, 38% have recommended a “buy” for the stock, and 62% have recommended a “hold.” None of them have recommended a “sell.”

The analyst consensus for Albemarle indicates a target price of $144.20, implying a return potential of 5.3% over the closing price of $136.89 on November 28, 2017. In the past three months, analysts’ consensus target price for Albemarle has risen from $123.60 to the current target price of $144.20, indicating that the analysts could be bullish on the stock.

Why more ‘holds’ and ‘buys’?

ALB posted better-than-expected 3Q17 earnings and made an upward revision to its fiscal 2017 adjusted EPS (earnings per share). It now expects 2017 adjusted EPS to be $4.40–$4.50 compared to the earlier guidance of $4.20–$4.40. ALB is also planning to increase its production of lithium capacity. That could be why analysts are recommending either a “hold” or a “buy” for ALB stock.

Individual brokerage views and recommendations

  • Deutsche Bank (DB) has rated Albemarle a “hold” and recommended a target price of $150, implying a return potential of 9.6% from its closing price of $136.89 as of November 28, 2017.
  • Jefferies has rated Albemarle a “buy” with a target price of $162, which implies a return potential of 18.3% from its closing price of $136.89 on November 28, 2017.
  • Citigroup has recommended a target price of $142 for Albemarle, implying a return potential of 3.7% from the closing price of $136.89 on November 28, 2017.

Investors looking to invest in ALB indirectly can invest in the VanEck Vectors Generic Drugs ETF (GNRX), which has invested 4.5% of its portfolio in Albemarle. The other holdings of the fund include Teva Pharmaceutical Industries (TEVA) and Mylan (MYL) with weights of 4.6% and 6.1%, respectively, as of November 28, 2017.

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