tiprankstipranks
Ratings

Albemarle: Hold Rating Amidst Cost-Cutting and Operational Optimization Challenges

Albemarle: Hold Rating Amidst Cost-Cutting and Operational Optimization Challenges

TD Cowen analyst David Deckelbaum maintained a Hold rating on Albemarle (ALBResearch Report) yesterday and set a price target of $115.00.

Discover the Best Stocks and Maximize Your Portfolio:

David Deckelbaum has given his Hold rating due to a combination of factors influencing Albemarle’s current and projected performance. The company is actively addressing weak macroeconomic conditions by implementing cost-cutting measures. Although Albemarle is optimizing operations to improve margins and expects a substantial reduction in capital expenditures to $750 million in 2025, it still anticipates a modest growth rate of 0-10%, which is lower than previous expectations.
Furthermore, the company’s recent financial results were below expectations, with net sales and lithium volumes falling short of forecasts. Despite these challenges, Albemarle has managed to exceed EBITDA expectations, largely due to lower spodumene costs, and is on track to achieve cash flow neutrality. However, meaningful improvement in the company’s financial standing appears contingent on broader macroeconomic recovery, prompting the Hold rating from David Deckelbaum.

According to TipRanks, Deckelbaum is an analyst with an average return of -4.3% and a 35.84% success rate. Deckelbaum covers the Energy sector, focusing on stocks such as Diamondback, Antero Resources, and California Resources Corp.

In another report released on February 5, Evercore ISI also downgraded the stock to a Hold with a $88.00 price target.

1