In a report published Wednesday, Topeka Capital Markets analyst Chris Kapsch initiated coverage on Albemarle ALB with a Hold rating and $67.00 price target.
In the report, Topeka Capital Markets noted, “Albemarle is a well-managed company, comprised of a portfolio of specialty chemicals businesses which collectively generate attractive returns and healthy cash flows across a business cycle. ALB exhibits cyclical growth characteristics;-- its core bromine franchise is not yet coming off trough, and the health of the catalyst industry may now be in question, with competitive rivalries having intensified. We also believe the industry's FCC businesses effectively over-earned in recent years, a function of the rare earth mineral speculative bubble. We believe Street estimates for 2014 still appear too high, even in the wake of post-2Q13 downward revisions. Considering additional estimate reductions seem possible, we would be looking for a more attractive entry point to establish or add to positions. Thus, we are initiating coverage on ALB with a Hold rating.”
Albemarle closed on Tuesday at $61.88.
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