- Albemarle (ALB +1.7%) is upgraded to Conviction Buy from Buy with a $63 price target at Goldman Sachs, reflecting increased confidence that ALB is "on the cusp of an unappreciated pricing cycle" in its bromine, lithium and refining solutions businesses.
- Goldman says the diversity and high cash flow of ALB’s businesses - the firm models 7% free cash flow yield in 2016 and 11% in 2017 - will enable the company to reduce net debt even in the event of economic malaise.
- The firm also believes the recent selloff provides an opportunistic entry point, as shares are lower by 20% in the past five months and its multiple has compressed to 11.7x 2016 EPS estimate vs. a historical average of ~14x.