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Analysts Are Raising the Target Price of Albemarle Stock

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Jan. 5 2018, Updated 9:06 a.m. ET

Analysts’ consensus on Albemarle

At the end of 2017, 21 analysts have been actively tracking Albemarle (ALB) stock. Among them, 32% recommended the stock as a “buy,” and 68% recommended a “hold.” None of the analysts recommended a “sell” on Albemarle.

The analysts’ consensus on Albemarle indicates a target price of $144.20. This target price implies a return potential of 12.3% from the closing price of $128.43 on December 27, 2017.

In the past three months, the consensus target price of ALB has risen from $127.30 to its current target price. This trend indicates analysts’ bullishness about the stock.

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Why no “sell” ratings?

Albemarle (ALB) posted a strong 3Q17 and made an upward revision of its fiscal 2017 adjusted EPS (earnings per share) guidance, indicating strong growth. ALB expects its adjusted EPS for fiscal 2017 to be $4.40–$4.50 compared to its previous guidance of $4.20–$4.40.

ALB is expanding its production capacity to meet the challenges of the ever-growing demand for lithium. This trend points to ALB’s growth plans over the next few years. As a result, no analysts have recommended a “sell” for Albemarle.

Individual brokerage views

  • J.P. Morgan (JPM) raised Albemarle’s target price to $136.00, implying a return potential of 5.9% from its closing price of $128.43 on December 27, 2017.
  • RBC (RY) raised Albemarle’s target price to $155.00, implying a return potential of 20.6% from its closing price of $128.43 on December 27, 2017.
  • UBS (UBS) raised Albemarle’s target price to $150.00, implying a return potential of 16.8% from its closing price of $128.43 on December 27, 2017.

Investors can indirectly hold Albemarle by investing in the Guggenheim S&P 500 Equal Weight Materials ETF (RTM). RTM invested 3.9% of its portfolio in Albemarle on December 27, 2017.

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