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Albemarle: Citibank Downgraded It to ‘Neutral’


Feb. 6 2019, Published 8:02 a.m. ET

Citibank downgraded Albemarle

On February 5, Citibank downgraded Albemarle (ALB) from “buy” to “neutral” and reduced the target price to $81 from the previous target price of $90. Citibank stated that slower economic activity and lower refining margins could impact the bromine and catalyst divisions. In the third quarter, Albemarle’s Lithium segment reported an adjusted EBITDA margin of 42%, while the Bromine Specialties and Catalysts segment reported adjusted EBITDA margins of 34% and 25%, respectively.

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Other brokerages

  • Verticle Group has reduced Albemarle’s target price to $59 from the previous target price of $89, which implies a decline of 27% over the closing price as of February 5.
  • Loop Capital lowered Albemarle’s target price to $112 from $128, which implies a potential gain of 37.8% from the closing price on February 5.
  • Jefferies (JEF) maintained its “buy” rating for Albemarle.

Consensus target price

Albemarle’s consensus target price is at $109.66, which implies a return potential of 34.85% from the closing price on February 5. The consensus target price has declined from $126.30 to the current target price. The stock has remained downward due to the dispute with Chile. However, the stock started to recover after the dispute settlement with Chile on January 25. On a year-to-date basis, the stock has risen 6.0%. FMC (FMC) has risen 16.0%.

Investors could hold Albemarle indirectly by investing in the Lithium ETF (LIT), which has invested 5.1% of in portfolio in Albemarle. The fund also provides exposure to Tesla Motors (TSLA) with a weight of 9.6% as of February 5.


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