Join        Login             Stock Quote

Albemarle (ALB) Downgraded To 'Hold' By Deutsche Bank On Lack Of Near-Term Catalysts

 January 24, 2013 12:29 PM

(By Balachander) Albemarle Corp. (NYSE: ALB) shares were downgraded to "Hold" from "Buy" by Deutsche Bank (DB) owing to a lack of near-term catalysts.

The bank, which raised price target on the stock to $70 from $64, said 2013 EPS will be back-end loaded and valuation, while not stretched, is nonetheless fair at 13.2x 2013E EPS.

DB wrote it sees no signs of structural deterioration in Albemarle's core bromine or catalyst franchises.

"Most disappointing in the near-term is that Catalysts, which was expected to have a 'step-out' earnings year in '13, is seeing the step shortened due to a number of factors (e.g. less favorable HPC mix, FCC customer turnarounds)," the bank wrote in a note.

[Related -Albemarle Corp: Fundamental Stock Research Analysis]

"With 1H '13E EPS down 17%, YoY, we believe the shares will be range-bound in the near-term," DB said.

Given a tepid macro backdrop, DB said it is lowering its 2013E EPS by $0.05 to $4.90, up 1 percent, and establishing a 2014E EPS of $5.50, up 12 percent.

The brokerage expects Albemarle to announce a $200MM-plus share buyback plan shortly (and to complete it in Q2) as its balance sheet is strong (negative net debt by y/e 2013E) and there is a lack of acquisition candidates.

Baton Rouge, Louisiana-based Albemarle is engaged in the development of highly-engineered specialty chemicals for consumer electronics, petroleum refining, utilities, packaging, construction, automotive/transportation, pharmaceuticals, among others.

Shares shed 3.22 percent to trade at $62.62 on Thursday. Over the past year, the stock has been trading between $50.88 and $68.51.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageThe S&P 500’s Worrisome Downturn In Drawdown

Last Friday I reviewed some of the bearish signals that were casting dark shadows across the US stock read on...

article imageADP: Private-Sector Employment Rises A Solid 200k In September

The pace of growth for private-sector employment picked up in September, according to this morning’s ADP read on...

article imageTreasury Market’s Inflation Expectations Tumble

The odds for a Fed rate hike are falling like a stone, or so it appears based on the implied inflation read on...

article imageEmerging Market Stocks: Last Week’s Red-Ink Leader

Value investors on the lookout for bargains have recently been eyeing up the battered corner of emerging read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.