Albemarle (ALB) +2% in Tuesday’s trading as Bank of America upgraded shares to Buy from Neutral with a $190 price target, raised from $167, following a 14% pullback from a recent peak, as the bank views the weakness as an attractive entry point for a company that has executed
through the lithium downturn and is positioning for recovery.
BofA analysts led by Rock Hoffman believe lithium pricing has moved beyond a purely headline-driven rebound and is increasingly supported by improving supply-demand fundamentals, noting Chinese permitting reform is keeping higher-cost lepidolite offline for longer, tightening marginal supply, and Chinese battery manufacturers are producing 2x new installations, supporting lithium demand.
Albemarle (ALB) has executed through the lithium price downturn, delivering meaningful cost
savings that enhance earnings leverage as the price improves, Hoffman said, expecting improved earnings visibility and attractive upside with disciplined capital allocation and a portfolio positioned to benefit from sustained EV and ESS demand.
Even with spot pricing above $20/kg sooner than expected, Hoffman views pricing as likely to remain constructive through the year, albeit volatile, and current pricing supports profitable production across most of Albemarle’s (ALB) existing and planned portfolio ex-Kemerton, improving confidence in earnings visibility.