Albemarle Rating Increased to Hold at Deutsche Bank (ALB)
Albemarle (NYSE:ALB) was upgraded by equities research analysts at Deutsche Bank to a “hold” rating in a research note issued to investors on Friday. The firm currently has a $67.00 price objective on the stock, down from their previous price objective of $75.00. Deutsche Bank’s target price would suggest a potential upside of 9.23% from the stock’s previous close.
The analysts wrote, “Guidance lowered 3.5% on contract loss. Valuation a fair 10.1x EBITDA. Hold. Albemarle shares fell 8% following its Q2 release as the company lowered ‘ts ’14 EPS guidance by ~3.5% despite having preannounced an earnings upside surprise on July 15. The primary driver of the lowered guidance was a contract loss in custom services. “While brominated flame retardants remain, Catalysts continues to perform at a high level (10%-plus earnings growth in ’14E). Moreover, Albemarle’s proposed $6B acquisition of Rockwood adds high growth, high margin and high multiple Lithium and Surface Treatment businesses while diluting the bromine business, itself a deterrent to some investors.. However, with valuation a fair 10.1x ’15E PF EBITDA, Hold.”
Albemarle (NYSE:ALB) traded down 0.88% during mid-day trading on Friday, hitting $60.80. 625,266 shares of the company’s stock traded hands. Albemarle has a 52-week low of $59.86 and a 52-week high of $76.28. The stock’s 50-day moving average is $70.2 and its 200-day moving average is $67.31. The company has a market cap of $4.783 billion and a P/E ratio of 15.21.
Albemarle (NYSE:ALB) last announced its earnings results on Wednesday, July 30th. The company reported $1.10 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.99 by $0.11. The company had revenue of $604.70 million for the quarter, compared to the consensus estimate of $646.75 million. During the same quarter in the prior year, the company posted $0.97 earnings per share. The company’s quarterly revenue was up 4.8% on a year-over-year basis. On average, analysts predict that Albemarle will post $4.35 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Wednesday, October 1st. Stockholders of record on Monday, September 15th will be given a dividend of $0.275 per share. This represents a $1.10 dividend on an annualized basis and a yield of 1.79%. The ex-dividend date of this dividend is Thursday, September 11th.
ALB has been the subject of a number of other recent research reports. Analysts at Topeka Capital Markets upgraded shares of Albemarle from a “hold” rating to a “buy” rating in a research note on Tuesday. They now have a $91.00 price target on the stock, up previously from $68.00. Separately, analysts at KeyCorp reiterated a “buy” rating on shares of Albemarle in a research note on Wednesday, July 16th. They now have a $82.00 price target on the stock, up previously from $78.00. Finally, analysts at JPMorgan Chase & Co. reiterated a “neutral” rating on shares of Albemarle in a research note on Wednesday, July 16th. They now have a $70.00 price target on the stock, up previously from $65.00. One research analyst has rated the stock with a sell rating, six have given a hold rating and four have issued a buy rating to the company. The stock presently has an average rating of “Hold” and an average target price of $74.40.
Albemarle Corporation (NYSE:ALB) is a developer, manufacturer and marketer of specialty chemicals, which meet customer needs across a range of end markets, including the petroleum refining, consumer electronics, plastics/packaging, construction, automotive, lubricants, pharmaceuticals, crop protection, food-safety and custom chemistry services markets.
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