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 $93.00.
Steve Byrne has given his Buy rating due to a combination of factors that highlight Albemarle’s strong financial and market positioning. The company has made significant strides in its cost-saving measures, achieving 90% of its target, which is expected to result in positive free cash flow by 2025 despite current market challenges. This progress, along with reduced capital expenditures, provides confidence in Albemarle’s financial health.
Additionally, Albemarle’s updated lithium supply-demand model indicates a more optimistic demand outlook, suggesting an earlier-than-anticipated shift to undersupply. This could potentially lead to a recovery in lithium prices. The company’s first-quarter performance exceeded expectations in terms of EBITDA, driven by cost savings that offset lower lithium prices. These factors, combined with an upward revision in the price objective and a strong long-term outlook, support the Buy rating.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $95.00 price target.