Deutsche Bank Downgrades Albemarle (ALB) to Hold; Taking a Breather
Deutsche Bank downgraded Albemarle (NYSE: ALB) from Buy to Hold with a price target of $70.00 (from $63.00).
The firm comments, "While we see no signs of structural deterioration in Albemarle’s core bromine or catalyst franchises (both of which should underpin a return to 10%-plus EPS growth in '14E), we are downgrading Albemarle to Hold from Buy owing to a lack of near-term catalysts as '13 EPS will be back-end loaded and valuation, while not stretched, is nonetheless fair at 13.2x '13E EPS. 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). With 1H '13E EPS down 17%, YoY, we believe the shares will be range-bound in the near-term."
Given a tepid macro backdrop, the fir is lowering '13E EPS by $0.05 to $4.90, up 1%, and establishing a '14E EPS of $5.50, up 12%.
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 $64.67 yesterday, with a 52 week range of $50.88-$68.51.
The firm comments, "While we see no signs of structural deterioration in Albemarle’s core bromine or catalyst franchises (both of which should underpin a return to 10%-plus EPS growth in '14E), we are downgrading Albemarle to Hold from Buy owing to a lack of near-term catalysts as '13 EPS will be back-end loaded and valuation, while not stretched, is nonetheless fair at 13.2x '13E EPS. 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). With 1H '13E EPS down 17%, YoY, we believe the shares will be range-bound in the near-term."
Given a tepid macro backdrop, the fir is lowering '13E EPS by $0.05 to $4.90, up 1%, and establishing a '14E EPS of $5.50, up 12%.
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 $64.67 yesterday, with a 52 week range of $50.88-$68.51.