Baird analyst Ben Kallo downgraded Albemarle (ALB) to Neutral from Outperform with a price target of $100, up from $90. The shares closed Tuesday up $9.65, or 12%, to $90.43.

Albemarle has traded higher in conjunction with Tesla's (TSLA) stock move and a renewed investor interest in electric vehicles, Kallo tells investors in a research note. While the analyst remains constructive on long-term trends, he thinks Albemarle's near-term risk/reward is now more balanced.

Further, there is some risk to the company's Catalysts and Bromine segments related to the coronavirus outbreak and slower end-market demand contends Kallo. He believes Albemarle shares are fairly valued.