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Albemarle -2.7% as Deutsche downgrades, foresees lithium pricing pressure

Published 11/14/2017, 09:30 AM
© Reuters.  Albemarle -2.7% as Deutsche downgrades, foresees lithium pricing pressure
  • Albemarle (NYSE:ALB) -2.7% premarket after Deutsche Bank (DE:DBKGn) downgrades shares to Hold from Buy while raising its stock price target to $150, as the firm believes the stock is fully valued.
  • Analyst David Begleiter's lithium field trip to China has increased Deutsche Bank's confidence that new lithium processing capacity is coming, which should begin to pressure prices by 2019.
  • Begleiter believes an investor would have to pay 23x estimated 2020 lithium EBITDA, to justify greater than 10% upside from ALB's current levels; he sees the stock performing in-line over the next 6-12 months after tripling during the past 21 months.
  • Now read: Albemarle Corporation 2017 Q3 - Results - Earnings Call Slides


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