Albemarle's Sale Of Surface Treatment Unit 'Furthers Compelling Lithium Growth Story'
Deutsche Bank's David Begleiter voiced his praise for the deal and, in a research note Monday, said, the Surface Treatment "sale furthers the (compelling) lithium growth story."
The analyst reiterated a Buy rating and boosted his price target on shares of Albemarle from $84 to $94.
"Albemarle has taken an important step toward its goal of becoming a focused, high growth, high margin lithium and catalyst company," according to Begleiter.
He also noted three other positives to the deal:
- "delevers the balance sheet to its targeted 2.0-2.5x net debt/EBITDA, thus removing a key investor concern,
- provides funding for the company's $600MM lithium capacity expansion and
- enables material ($1B-plus) share buybacks in ’17-’18."
Latest Ratings for ALB
|Feb 2017||RBC Capital||Initiates Coverage On||Outperform|
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