ALB: Bromine Story Improving On Lower Chinese Supply

Analysts at Citigroup reiterate their "buy" rating on Albemarle Corp

, while raising their estimates for the company. The target price for ALB is set to $52. According to Citigroup, “The bromine story continues to be brighter than we expected. Bromine shortages are occurring globally as nearly 100kt of Chinese capacity was shuttered during the ‘09 downturn. On the demand side, electronics has snapped back strongly as flat panel TV sales are robust due to World Cup Soccer, and some bromine-derivatives such as tetrabrom are sold out.” “We expect a solid 2Q for Refinery Catalysts, and are raising our segment EBIT estimate 5% to $44mm. While volumes are not great at refineries, ALB is no longer burdened this year with pass-through metal costs that lowered earnings by $40 mm last year… ALB makes the drilling fluids which BP is currently using to drill two relief wells in the Gulf. We are mindful that this near-term positive could be offset by lower drilling activity and uncertainty around future regulation in the long run,” the analysts mention. Citigroup has raised its EPS estimates for 2010 from $2.76 to $3.00.