In a report released today, Steve Byrne from Bank of America Securities reiterated a Buy rating on Albemarle (ALB – Research Report), with a price target of $103.00.
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Steve Byrne’s rating is based on Albemarle’s strategic cost-cutting measures and capital expenditure reductions, which have improved the company’s EBITDA and margins despite lower sales figures. Albemarle has already achieved more than 50% of its cost reduction goal and has reduced its capital expenditure forecast for the coming years, positioning itself for margin expansion and breakeven free cash flow by 2025.
Additionally, the global growth in lithium demand, particularly from the electric vehicle sector, presents a favorable outlook for the company. While there is some pressure on lithium prices due to increased production in China, the projected 26% demand growth and the presence of unprofitable operations on 25% of the cost curve suggest potential for price increases. Steve Byrne maintains the Buy rating as the price objective of $103 represents significant upside potential compared to the current share price, indicating that price risks are skewed to the upside.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $122.00 price target.
Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ALB in relation to earlier this year.