Albemarle’s Hold Rating Amid Weak Lithium Demand and Pricing Pressures

Michael Sison, an analyst from Wells Fargo, maintained the Hold rating on Albemarle (ALB – Research Report). The associated price target was lowered to $80.00.

Michael Sison has given his Hold rating due to a combination of factors impacting Albemarle’s stock. The company is currently navigating a challenging environment characterized by weak lithium demand and pricing pressures, particularly in the electric vehicle sector. Despite these headwinds, Albemarle’s management is focused on controlling costs and improving cash flow, with expectations of reaching breakeven by 2025.
The company’s efforts to achieve significant cost and productivity improvements by the end of 2025 position it well for potential future gains when the market conditions improve. However, the persistent low lithium prices and the uncertain demand outlook, especially outside of China, suggest limited near-term upside for the stock. Given these dynamics, the stock is expected to remain range-bound, justifying the Hold rating as the company works through these macroeconomic challenges.

In another report released on March 6, Mizuho Securities also maintained a Hold rating on the stock with a $85.00 price target.