Albemarle (ALB) GRM Deal an Incremental Positive - Nomura

August 23, 2016 9:59 AM EDT
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Price: $93.36 +0.33%

Rating Summary:
    12 Buy, 9 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Nomura Securities analyst Aleksey Yefremov reiterated a Buy rating and $92 on Albemarle (NYSE: ALB) saying the GRM deal is an incremental positive.

Yefremov commented, "On August 23, ALB announced plans to acquire lithium salt conversion assets from Jiangxi Jiangli New Materials Science (also known as GRM). Acquired assets include manufacturing facilities in Jiangxi and Sichuan, China, with a combined total 15KT of capacity to convert spodumene into lithium carbonate and lithium hydroxide. Financial terms of the transaction were not disclosed, but ALB stated economics were better than the alternative of spending $300-350mn to build a 25KT greenfield plant. Payback period for the investment is expected to be two to three years. The deal is expected to close in 1Q17."

For an analyst ratings summary and ratings history on Albemarle click here. For more ratings news on Albemarle click here.

Shares of Albemarle closed at $83.85 yesterday.

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