TD Cowen downgraded ALB to “market perform” from “outperform”
TD Cowen slashed lithium stock Albemarle Corp’s (NYSE:ALB) rating to “market perform” from “outperform” this morning. The firm also cut its price target all the way to $130 from $220, citing weak pricing. Separately, Albemarle announced it was laying off 4% of its workforce.
ALB was last seen up 1.2% to trade at $121.26, but earlier slipped to $117.38. Familiar support at the $112 level, home to its recent Nov. 13 three-year lows, swooped in to catch the stock’s latest pullback. Still, the equity remains down 16% since the start of the year.
It’s worth noting that a bout of short covering could also boost the shares. Short interest represents 12.1% of ALB’s available float, or over four days’ worth of pent-up buying power. Plus, the stock’s 14-day relative strength index (RSI) of 30.2 sits on the cusp of “oversold” territory.
When weighing in on Albemarle stock, options look like a good way to go at the moment. This is per the security’s Schaeffer’s Volatility Scorecard (SVS) of 98 out of 100, which means it typically outperforms options traders’ volatility expectations.