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Nervous markets await NvidiaThis summary was created by AI, based on 4 opinions in the last 12 months.
Albemarle Corp, a key player in the lithium market, faces significant challenges amid declining lithium prices, which have dropped by 55% over the past year. This downturn is primarily influenced by China's economic conditions, where a weak GDP has not translated into improved earnings, despite the potential for economic stimulus to stabilize lithium prices given that China accounts for 60% of all EV sales. The experts are concerned about the readiness of the EV market, particularly the lack of sufficient charging infrastructure, which contributes to a cautious outlook on the industry's growth. Additionally, the capital-intensive nature of the lithium business makes it difficult to predict profitability, with mounting skepticism about the sustainability of recent price surges. The abundance of lithium in North America is noted, but without being a low-cost producer, investments in this sector may not be promising.
The energy transition from fossil to renewable takes time. That's the reality. There's plenty of lithium in the world, but how quickly can we get it to market? The market was surprised by how quickly brine mining in Chile. Also, people aren't buying EV's as quickly as the market expected. Lithium is close to the bottom, so the risk/reward looks good.
Lithium is notoriously volatile and has been down because Wall Street has fallen out of love with EVs. But this remains a major growth area. Recently they reported a strong quarter and hugely raised their full-year forecast. He believes in lithium and EVs long term. Sell into strength and buy on weakness, like now.
Lithium prices are adjusting; China prices in particular are contracting.
Price was $33,400/ton last week, but futures for August are priced at $23,000.
ALB in particular got downgraded today by Bank of America, with target price going from $262 to $195.
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UBS predicts EV sales will rise 30-35% in China this year. If this trend holds true, then China’s demand should offset any weakness in lithium prices. Also, Albemarle’s PE of 11.24x now has risen from 9.4x to start the year, but is historically reasonable considering the media average over five years is 30.85x. Read: PDAC special: minerals for our full analysis.
Albemarle Corp is a American stock, trading under the symbol ALB-N on the New York Stock Exchange (ALB). It is usually referred to as NYSE:ALB or ALB-N
In the last year, 4 stock analysts published opinions about ALB-N. 1 analyst recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Albemarle Corp.
Albemarle Corp was recommended as a Top Pick by on . Read the latest stock experts ratings for Albemarle Corp.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
4 stock analysts on Stockchase covered Albemarle Corp In the last year. It is a trending stock that is worth watching.
On 2025-05-23, Albemarle Corp (ALB-N) stock closed at a price of $57.61.
Albemarle delivered a better-than-expected 1Q -- with adjusted Ebitda of $267 million, roughly 31% ahead of consensus -- and maintained its outlook considerations, suggesting 2025 adjusted Ebitda of $800 million-$1 billion under its $9/kg LCE price scenario. Though fundamental catalysts for higher lithium prices remain limited, we think Albemarle's strong progress on self-help initiatives, including conversion-network optimization, cost cuts and cash-flow prioritization, will ultimately leave the company more competitively positioned through the cycle. Management updated its long-term lithium forecasts and expects demand to hit roughly 3 million metric tons LCE by 2030. ALB continues to have line of sight to breakeven free cash flow in 2025. Direct tariff impacts are projected to be minimal. The company has net $4.6B in debt and preferred shares, against $1.1B in operating cash flow, so is fairly leveraged. While we would consider it OK, we do not think it is the time to buy this just yet.
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