UPDATE: Deutsche Bank Reiterates On Albemarle On Fair Valuation

In a report published Friday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on Albemarle (NYSE: ALB), but lowered the price target from $75.00 to $67.00.

In the report, Deutsche Bank noted, “Guidance lowered 3.5% on contract loss. Valuation a fair 10.1x EBITDA. Hold. Albemarle shares fell 8% following its Q2 release as the company lowered ‘ts ‘14 EPS guidance by ~3.5% despite having preannounced an earnings upside surprise on July 15. The primary driver of the lowered guidance was a contract loss in custom services.

"While brominated flame retardants remain, Catalysts continues to perform at a high level (10%-plus earnings growth in ‘14E). Moreover, Albemarle's proposed $6B acquisition of Rockwood adds high growth, high margin and high multiple Lithium and Surface Treatment businesses while diluting the bromine business, itself a deterrent to some investors.. However, with valuation a fair 10.1x '15E PF EBITDA, Hold.”

Albemarle closed on Thursday at $61.34.