Morgan Stanley analyst Vincent Andrews has maintained their bearish stance on ALB stock, giving a Sell rating on July 29.
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Vincent Andrews has given his Sell rating due to a combination of factors impacting Albemarle’s stock. Despite a positive initial reaction to the company’s second-quarter earnings, Andrews notes that the beat was largely due to timing and product mix, which are expected to reverse in the second half of the year. Furthermore, the lithium market remains oversupplied, which poses a risk to Albemarle’s earnings outlook.
Additionally, while there has been some volatility in Albemarle’s share price, driven by hopes for supply-side reform in China and a temporary rebound in lithium prices, these factors have not led to a substantial change in the company’s overall earnings outlook. The recent capital expenditure cut and a one-time customer advance have provided some financial relief, but future cash costs associated with fulfilling these advances remain a concern. As such, Andrews does not foresee a material change in investor sentiment or consensus estimates, supporting his Sell rating.
In another report released on July 29, Robert W. Baird also downgraded the stock to a Sell with a $60.00 price target.