Andres Castanos-Mollor, an analyst from Berenberg Bank, maintained the Hold rating on Albemarle (ALB – Research Report). The associated price target was lowered to $74.00.
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Andres Castanos-Mollor has given his Hold rating due to a combination of factors influencing Albemarle’s current and future performance. Despite Albemarle’s strong Q1 2025 results, which exceeded EBITDA expectations significantly, the impact on the stock’s short-term outlook and share price was minimal. This is largely attributed to the ongoing low lithium prices, which are expected to keep the stock underperforming until a recovery occurs.
Additionally, while lower spodumene costs contributed to a favorable EBITDA margin in Q1, the outlook for Q2 is less optimistic, with management guiding towards a reduced margin. Although the long-term demand for lithium appears promising, with expectations of significant growth, current market conditions and valuations suggest that Albemarle will not be cash positive in 2025. The company’s valuation assumes a future recovery in lithium prices, which is not anticipated until 2026, thereby justifying the Hold rating.
In another report released on May 6, Scotiabank also maintained a Hold rating on the stock with a $65.00 price target.