Street Calls of the Week
Investing.com - RBC Capital has raised its price target on Albemarle (NYSE:ALB) to $117.00 from $80.00 while maintaining an Outperform rating on the $11.2 billion specialty chemicals company. According to InvestingPro data, analyst targets for ALB range from $58 to $200, reflecting diverse market opinions.
The firm cited improving lithium pricing in the third quarter following the CATL mine halt, with North American pricing now in the approximately $10.5/kg range and Asian spot prices near $9/kg.
RBC Capital expects Albemarle to achieve high single-digit percentage lithium volume growth in fiscal year 2025, followed by low double-digit percentage EBITDA growth in fiscal year 2026 from margin improvement and potential capacity closures that could facilitate price momentum.
The investment bank has raised its quarterly and annual EBITDA estimates for Albemarle to $190 million for Q3, $980 million for FY25, and $1,150 million for FY26, up from previous estimates of $160 million, $940 million, and $1,020 million respectively.
RBC Capital also increased its valuation multiple to 14.0x FY26 estimated EBITDA from 12.0x previously, noting that Albemarle’s stock has traded up more than 50% since Q2 earnings on improved price sentiment and supply curtailments in the lithium market.
In other recent news, Albemarle Corporation reported its second-quarter 2025 earnings, showing a decline in both net sales and adjusted EBITDA compared to the previous year. Despite facing challenges due to lower lithium prices, the company has maintained its full-year outlook. Albemarle highlighted significant improvements in cost and productivity as part of its strategy to navigate the current market conditions. These developments come as the company continues to adapt to the pressures in the lithium market. There was no mention of any mergers or acquisitions in the recent updates. Additionally, there were no analyst upgrades or downgrades reported for Albemarle at this time. Investors may find these recent developments crucial as they assess the company’s performance amid market challenges.
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