Topeka Capital Upgrades Albemarle (ALB) to Buy

Topeka Capital upgraded Albemarle (NYSE: ALB) from Hold to Buy with a price target of $91.00 (from $68.00).

Analyst Chris Kapsch said, "We are upgrading our rating on ALB to Buy from Hold, on favorable portfolio implications associated with the proposed Rockwood (ROC-$82.86:NR) acquisition, a perceived positive inflection in bromine, the potential for several positive catalysts near-term, and an anticipated valuation re-rating for the new post-merger Albemarle. We also believe ALB’s bold move, in levering up to acquire a business that improves the Company's overall growth profile and attractiveness, makes strategic sense—particularly in this interest rate environment. As ALB subsequently deleverages via growth and strong FCF generation, we expect value will accrue to equity holders. Our revised 12-month price target of $91 (up from $68) assumes an 11.5X multiple on a combined 2015 pro forma EBITDA projection for the new Albemarle."

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 $68.88 yesterday.

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