Albemarle stock initiated with Buy rating at Rothschild Redburn on lithium price outlook

Investing.com - Rothschild Redburn initiated coverage on Albemarle (NYSE:ALB) with a Buy rating and a $135.00 price target on Friday. The stock, currently trading at $97.36, has shown strong momentum with a 61% return over the past six months, according to InvestingPro data.

The research firm cited Albemarle’s favorable positioning to benefit from rising lithium prices, with particular emphasis on the company’s spodumene assets as a key driver for earnings growth.

Rothschild Redburn expects the lithium price uplift to primarily benefit spodumene assets rather than converters, giving Albemarle an advantage due to its significant spodumene exposure.

The firm also noted that Albemarle faces limited exposure to high Chilean royalties since its Atacama brine facility represents a smaller proportion of the company’s overall asset portfolio.

Rothschild Redburn anticipates better margin accretion for Albemarle from the expected lithium price increases, supporting its bullish outlook on the stock.

In other recent news, Albemarle Corporation reported its second-quarter 2025 earnings, which showed a decline in net sales and adjusted EBITDA compared to the previous year. Despite these challenges, the company maintained its full-year outlook, citing significant cost and productivity improvements. Additionally, RBC Capital raised its price target for Albemarle to $117 from $80, maintaining an Outperform rating. This adjustment comes amid improving lithium prices, particularly following a halt at the CATL mine, with North American pricing around $10.5/kg and Asian spot prices near $9/kg. These developments highlight Albemarle’s resilience in navigating market pressures while adjusting to changes in lithium pricing. Investors will find these updates crucial as they consider the company’s performance and future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.