Wells Fargo analyst Michael Sison has maintained their neutral stance on ALB stock, giving a Hold rating yesterday.
Michael Sison has given his Hold rating due to a combination of factors influencing Albemarle’s current market position. One of the primary reasons is the sluggish growth in Energy Storage volumes, which is affected by tariff-related challenges in the automotive industry and persistently soft lithium prices. These factors contribute to a cautious outlook, leading to a maintained price target of $60.
Furthermore, while there is a slight improvement in the earnings outlook for Energy Storage, with an increase in EPS estimates, the overall sales are expected to decline year-over-year. The anticipated growth in global electric vehicle sales and lithium demand is not translating into significant volume growth for Albemarle’s Energy Storage segment. Additionally, the company faces minimal direct tariff impacts, but the overall valuation remains sensitive to lithium pricing scenarios, which are expected to stabilize but not significantly improve in the near term.
ALB’s price has also changed moderately for the past six months – from $98.240 to $59.320, which is a -39.62% drop .