Analyst David Deckelbaum from TD Cowen maintained a Hold rating on Albemarle and keeping the price target at $85.00.
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David Deckelbaum has given his Hold rating due to a combination of factors including Albemarle’s recent financial performance and strategic decisions. The company reported net sales and EBITDA figures that exceeded consensus expectations, with net sales 2% above and EBITDA 17% above consensus. However, despite these positive results, the company’s capital expenditures were significantly below expectations, which led to a downward revision of future capex guidance.
Additionally, while Albemarle’s energy storage volumes showed strong growth, the outlook for free cash flow is heavily reliant on a substantial prepayment, raising concerns about sustainability. The recent agreement to sell a significant portion of the Ketjen segment and the entire Eurecat JV stake, although beneficial for deleveraging, also resulted in a non-cash goodwill impairment charge. These mixed signals, with strong operational performance but cautious future financial guidance and strategic uncertainties, underpin the Hold rating.
Deckelbaum covers the Energy sector, focusing on stocks such as APA, Sable Offshore, and Coterra Energy. According to TipRanks, Deckelbaum has an average return of 3.6% and a 38.12% success rate on recommended stocks.
In another report released yesterday, Mizuho Securities also maintained a Hold rating on the stock with a $92.00 price target.