Shares of chemicals manufacturing company Albemarle (NYSE:ALB) fell more than 7% in Monday’s trading session as Wall Street analysts grew cautious of the stock, thus pushing investors to the sidelines.
Notably, Joshua Spector, an analyst at investment firm UBS, downgraded ALB to Neutral from Buy on weakening lithium prices and a weak electric vehicle outlook. He also cut his price target to $140 from $253. Spector noted that the firm’s electric vehicle team predicted decreased EV growth due to poorer demand expectations in the United States and Europe
Similarly, Morgan Stanley analyst Vincent Andrews sees downside potential in lithium and lithium stock prices in the near-to-medium term. According to Andrews, the risks will deepen as demand for lithium and electric vehicles slump.
Furthermore, Arun Viswanathan of RBC Capital lowered his price target for Albemarle to $163 from $212. However, he kept his Outperform rating due to the company’s strong financial position, low inventory levels, and long-term growth prospects.
So far, ALB shares have declined by 44% this year. Furthermore, the recent selloff erased any price gains the stock mustered over the past five days.
Is ALB Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ALB stock based on eight Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average ALB price target of $202.27 per share implies 70.15% upside potential.
