BofA update shows where active managers are putting money
Investing.com - Mizuho (NYSE:MFG) has raised its price target on Albemarle (NYSE:ALB) to $78.00 from $76.00 while maintaining a Neutral rating on the specialty chemicals company. The stock, currently trading at $66.91, has experienced significant volatility, dropping 18% in the past week. According to InvestingPro analysis, the company shows mixed signals with strong dividend consistency but faces profitability challenges.
The price target adjustment follows Albemarle’s better-than-expected second-quarter 2025 results, which showed adjusted EBITDA of $336 million compared to consensus estimates of $243 million, driven by a 32% quarter-over-quarter increase in lithium volume. Despite these results, InvestingPro data reveals that seven analysts have revised their earnings downward for the upcoming period, though the company maintains a healthy current ratio of 2.11.
Albemarle has guided for second-half 2025 adjusted EBITDA low scenario midpoints of $598 million, significantly above Mizuho’s estimate of $450 million and Bloomberg consensus of $585 million, reflecting improved fixed cost absorption from record production levels.
The company has reported year-to-date cash flow from operations of $538 million against approximately $675 million in full-year capital expenditures, suggesting Albemarle will achieve positive free cash flow before year-end 2025, excluding certain items.
Albemarle has also received $307 million in proceeds from Grace preferred shares, which will contribute to positive full-year free cash flow including all items, while the company has revised its second-half 2025 lithium volume growth guidance to high single-digit percentage year-over-year, up from its previous full-year guidance of approximately 5%.
In other recent news, Albemarle Corporation reported second-quarter earnings that significantly exceeded analyst expectations. The company posted adjusted earnings of $0.11 per share, surpassing the consensus estimate of -$0.78 per share. Revenue for the quarter was $1.33 billion, which also beat forecasts of $1.22 billion, despite being down 7% year-over-year due to lower lithium prices. These results highlight the impact of Albemarle’s cost-cutting measures amid challenging market conditions. The company continues to navigate the pressures from declining lithium prices effectively. While Albemarle’s earnings and revenue figures are noteworthy, no new mergers or acquisitions were reported. Analyst firms have not recently upgraded or downgraded the stock following these results. These developments provide investors with critical insights into Albemarle’s current financial health.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.