Vertical Group cuts Albemarle price target to Street-low $59 - InvestingChannel

Vertical Group cuts Albemarle price target to Street-low $59

Vertical Group analyst James Bardowski lowered his price target for Albemarle to $59 from $86 and reiterates a Sell rating on the shares. Nomura Instinet this morning also downgraded Albemarle to Neutral from Buy. The stock in early trading is down 2%, or $1.47, to $75.50. Bardowski’s new price target is the low among sell-side analysts tracked by Bloomberg. Albemarle’s 50% interest in the Wodgina Li project is likely a long-term positive, but near-term it will bring higher costs and lower margins despite a modest boost to volumes, Bardowski tells investors in a research note. Further, the analyst believes Albemarle’s Lithium segment could fall short of expectations in Q4. That segment is what investors care most about, says Bardowski. His new price target represents 23% downside from current levels.