Albemarle downgraded to Underperform from Neutral at Baird

Baird downgraded Albemarle (ALB) to Underperform from Neutral with an unchanged price target of $60. The firm believes the recent increase in lithium pricing may be driven by speculators and is concerned that a “lower-for-longer” pricing environment may persist longer than believed. Baird sees risk to Albemarle’s contract renegotiations, which it expects will become an investor focus in 2026. The market has structurally changed, which could challenge the longer-term supply/demand imbalance forecasts, and Albemarle’s balance sheet concerns could be “amplified” near term, the analyst tells investors in a research note.