CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We cut our 12-month target by $66 to $230 on a forward P/E of 12x our ’24 EPS estimate, well below the five-year average of 22.8x, but higher than the one-year average of 9.5x due to increased capacity in ’24. We lower our ’23 EPS view by $9.16 to $23.26, ’24’s by $7.71 to $19.20, and set ’25’s as $21.22. Q3 sales rose 10% Y/Y on higher volumes (+40%) (higher demand) in the Energy Storage segment (73% of Q3 sales) and higher pricing in the Ketjen segment. Significantly lower margins were due to lower lithium market pricing. ALB missed consensus EPS estimates by $0.96. Despite tough Q3 results, driven by lower lithium market pricing, we keep our bullish long-term outlook on lithium demand due to robust global EV growth, and our positive view on ALB’s growth opportunities – agreement with Ford (F 10 ***) and expanded capacity. We note ALB recently signed an agreement with Caterpillar (CAT 233 ****) to collaborate on solutions to “support the full circular battery value chain and sustainable mining operations.”