Tesla, $TSLA, short sellers have lost nearly $5.5 billion over 4 days, per Reuters.
..thankfully I am not one of them .
..lithium stock holders can blame shorters but can they blame why they are shorting? If there's no smoke, there's no fire.
ALB share price is $125.73 and due to report its quarterly results tomorrow....BoA suggesting Price target of $51 yet maintains buy? ALB is trading at PE of just under 9x, compare that against PLS PE >41x and LTR at 21.7x (based on today's price and Bell Potters 2025 NPAT est) and you know that Aussie lithium stocks aren't cheap and they're not cheap because they're still well loved.
On Monday, BofA Securities revised its price target for Albemarle Corporation (NYSE:ALB), a global specialty chemicals company, reducing it to $51 from the previous $54 while retaining a Buy rating on the stock.
The adjustment follows the latest quarterly earnings report from AllianceBernstein (NYSE:AB), which showed in-line earnings per share (EPS) for the first quarter of 2024 at $0.73, along with positive net flows.
AllianceBernstein reported its first quarter of positive net flows after three consecutive quarters of net outflows, totaling $0.5 billion, an increase from the $0.3 billion projected by BofA. The positive shift was attributed to strong inflows in fixed income, which saw an addition of $7 billion, and alternative/multi-asset classes, which contributed $3 billion. However, equity flows continued to be negative with an outflow of $10 billion.
Looking ahead, BofA Securities anticipates improvements in flows throughout 2024, driven by fixed-income reallocations, re-risking strategies, and sustained momentum in both taxable and municipal fixed-income markets.
In terms of AllianceBernstein's financial performance, expectations are set for a significant increase in operating margin (op margin) in the current year and continuing into 2025. The anticipated growth in op margin is supported by the consolidation of the company's headquarters, as the New York City office lease is set to expire in December 2024, and the planned divestment of Bernstein Research in the second quarter of 2024.
AllianceBernstein has upheld its target for an operating margin improvement of 350-500 basis points over the 2023 level, which was reported at 28%. This forecast suggests a focus on operational efficiency and strategic financial management aimed at enhancing profitability in the coming years. InvestingPro Insights
As the financial community digests BofA Securities' revised price target for Albemarle Corporation (NYSE:ALB), InvestingPro provides additional context with a blend of real-time metrics and expert analysis. Albemarle's market capitalization stands at $13.74 billion, reflecting its significant presence in the specialty chemicals industry. Despite concerns over sales and profitability, the company boasts a robust dividend track record, having maintained dividend payments for an impressive 31 consecutive years. This consistency is a testament to Albemarle's commitment to shareholder returns.
The company's current P/E ratio is 8.72, with an adjusted P/E ratio for the last twelve months as of Q4 2023 at 7.76. This valuation metric suggests that Albemarle's earnings are valued lower than the industry average, which could indicate an undervaluation by the market or specific challenges the company is facing. Additionally, the company's revenue growth over the last twelve months was 31.38%, a substantial increase that highlights its capacity to expand its top line.
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