In a report released today, Rock Hoffman from Bank of America Securities maintained a Buy rating on Albemarle, with a price target of $86.00.
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Rock Hoffman’s rating is based on Albemarle’s impressive second-quarter performance, where the company’s EBITDA significantly exceeded expectations, primarily due to achieving cost savings goals ahead of schedule. The reduction in costs across various areas such as COGS, SG&A, and R&D contributed to this strong performance, alongside higher-than-expected equity income from the Talison joint venture.
Despite maintaining its full-year guidance, Albemarle’s ability to outperform in a challenging price environment, coupled with a favorable product mix in its Energy Storage segment, supports the Buy rating. The company’s strategic positioning and cost management efforts are seen as positive indicators for future growth, even as potential pricing pressures loom in the second half of the year.
In another report released on July 17, RBC Capital also maintained a Buy rating on the stock with a $80.00 price target.