Scotiabank analyst Ben Isaacson yesterday morning downgraded Albemarle to Sector Perform from Outperform with a price target of $135, down from $150. The firm’s updated cash flow outlook sees “deeply negative” free cash flow in 2024, followed by moderately negative cash flow in 2025 and 2026. These forecasts will only deteriorate further if and when Scotiabank runs a more conservative mid-term price deck than the $20/kg currently being using, the analyst tells investors in a research note. The firm says it can’t justify a double-digit EBITDA multiple for Albemarle.
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