Albemarle (ALB – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Vincent Andrews from Morgan Stanley maintained a Sell rating on the stock and has a $68.00 price target.
Vincent Andrews has given his Sell rating due to a combination of factors impacting Albemarle’s financial outlook. The company’s EBITDA and EPS estimates for the upcoming years have been revised downward, reflecting a less favorable financial performance compared to consensus expectations. Specifically, the EPS for 2025 has been adjusted to -$2.57, significantly below the consensus of -$0.76, indicating potential challenges in profitability.
Another contributing factor to the Sell rating is the impact of a $350 million customer prepayment, which is expected to create a headwind to cash flow from operations over a five-year period rather than being fully realized in 2026. Additionally, adjustments in net interest expenses due to changes in cash balances and updated historical data following the 10K filing have influenced the revised estimates. These elements combined suggest a cautious outlook for Albemarle, justifying the Sell recommendation.