Goldman Sachs Bullish on Abermarle (Today) Goldman Sachs Bullish On Albemarle (ALB) Citing Lithium Growth Potential
.January 11, 2017 9:59 AM EST
Goldman Sachs maintains Conviction Buy on Albemarle (NYSE: ALB), price target of $116.00. Analyst Robert Koor says to company is preparing for growth in lithium.
"ALB is transforming into an increasingly lithium-focused company, which we estimate will represent ~40% of ALB’s 2017 adjusted EBITDA. This evolution was underscored in the last few weeks by: (1) closing its $3.2bn Chemetall sale to BASF, (2) closing its $145mn purchase of Chinese spodumene (lithium) converter Jiangxi Jiangli, and (3) finalizing its lithium expansion agreement with the Chilean government. In our view, these moves cement ALB as the world’s leading, low-cost lithium franchise with unmatched diversity of supply, vertical integration and global reach. Its expansion efforts at existing facilities should provide comfort to battery manufacturers looking to deliver their own supply chain confidence to the expanding chorus of automakers working on electric vehicle platforms."
Koor is raising his EPS estimate for 2017 from $4.17 to $4.38 and his EPS estimate for 2018 from $4.81 to $5.12 to reflect "current bullish lithium price and volume trends" coupled with ALB's growth initiatives.
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 $89.88 yesterday.