Jefferies Covers Chemical Stocks (ALB)
Jefferies & Co. is out with a research report covering the chemical stock sector. It rates Albemarle Corporation (NYSE: ALB) at a Buy.
In a note to clients, Jefferies writes, "We believe chemical shares already partly discount a growth scare in Q4, reflecting concerns that seasonal weakness into year-end and ahead of the Chinese New Year (Feb. 3, 2011) will be exacerbated by weakening end-market demand. Sell-offs this fall should present attractive entry points on a 6-12 month horizon."
It went on to say, "We continue to think the sector faces a growth scare, not a downturn, and consequently view a Q4 downdraft as an attractive entry point. Given the lack of visibility, however, a barbell strategy should have a good risk/reward, with companies with improving secular positions and pricing power at one end (such as Buy-rated ALB and CBT), and at the other end companies that combine a valuation disconnect.."
Shares of Albemarle closed at $40.09 yesterday.
