Earnings ExpectationsThe analyst upgrades ALB to Buy from Neutral, with an increased price target reflecting expectations of higher future earnings.
Lithium Market DeficitA combination of higher energy storage demand and years of slower western capacity additions are pushing lithium markets into deficit, which should be a positive driver for ALB stock.
Price Increase ScenarioAn upside scenario exists if the US views lithium as strategic and considers a price floor to support new projects, which could benefit a significant portion of ALB's production.