Albemarle anticipates strong lithium market recovery in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 17 2024
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Should l Buy ALB?
Albemarle Corp's stock fell 5.05% as it crossed below the 5-day SMA, reflecting investor concerns amid broader market gains.
Analysts predict significant profit growth for Albemarle in 2026 due to a recovery in the lithium market, particularly as lithium prices rebound following a slowdown in electric vehicle investments. The company also expects to achieve $450 million in cost savings through divestitures, exceeding its initial target, which will enhance financial stability. Furthermore, rising lithium prices, which surged by 85% over the past year, are expected to bolster Albemarle's profitability significantly.
The outlook for Albemarle is cautiously optimistic, with the potential for substantial earnings growth driven by the recovering lithium market and effective cost management strategies.
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Analyst Views on ALB
Wall Street analysts forecast ALB stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALB is 149.79 USD with a low forecast of 85.00 USD and a high forecast of 210.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
10 Buy
10 Hold
0 Sell
Moderate Buy
Current: 156.480
Low
85.00
Averages
149.79
High
210.00
Current: 156.480
Low
85.00
Averages
149.79
High
210.00
About ALB
Albemarle Corporation is engaged in transforming essential resources into critical ingredients for mobility, energy, connectivity, and health. The Company’s segments include Energy Storage, Specialties, and Ketjen. The Energy Storage segment develops and manufactures a range of basic lithium compounds, including lithium carbonate, lithium hydroxide, and lithium chloride. Its Specialties business optimizes its portfolio of bromine and highly specialized lithium solutions. Its Specialties business serves a variety of industries, including energy, mobility, connectivity, and health. Specialty products are essential in both internal combustion and electric vehicles, from high-voltage cables and powertrains to airbags and tires. Its Ketjen segment includes clean fuels technologies (CFT), fluidized catalytic cracking (FCC) catalysts and additives, and performance catalyst solutions (PCS). It serves various markets such as grid storage, automotive, aerospace, conventional energy, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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