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Investing.com - BMO Capital has raised its price target on Albemarle (NYSE:ALB) to $136.00 from $125.00 while maintaining an Outperform rating on the lithium producer’s stock. The new target represents a 12% upside from the current price of $121.39, with ALB trading near its 52-week high of $125.85 and closely aligned with InvestingPro’s Fair Value assessment.
The price target increase reflects BMO’s updated forecast for Albemarle ’s Energy Storage (lithium) average selling price, which the firm now expects to reach approximately $16,000 per ton in 2027, up from its previous estimate of $15,000 per ton.
BMO has accelerated its timeline for when Albemarle will achieve this midcycle price point, now modeling it for 2027 rather than 2028 as previously projected, with prices expected to rise with inflation after 2028.
The new target represents approximately 10 times the company’s estimated 2027 EV/EBITDA and 14-15 times its estimated 2026 EV/EBITDA, with 2026 lithium average selling prices projected at around $13,000 per ton, essentially at spot prices. For context, Albemarle’s current EV/EBITDA multiple stands at 25.42.
BMO cited increased demand expectations in China, particularly in energy storage systems (ESS) and other storage applications, as a key factor supporting the lithium market and its continued Outperform rating on Albemarle stock. This positive outlook aligns with the stock’s impressive 107.37% price return over the past six months. InvestingPro data reveals additional insights including 14+ ProTips and comprehensive metrics in the Pro Research Report, available for Albemarle and 1,400+ other US equities.
In other recent news, Albemarle Corporation reported its third-quarter 2025 earnings, surpassing analyst expectations. The company achieved an adjusted earnings per share (EPS) of -$0.19, significantly beating the forecasted -$0.90. Additionally, Albemarle’s revenue came in at $1.31 billion, exceeding the anticipated $1.27 billion. RBC Capital has responded to these developments by raising its price target for Albemarle to $120.00 from $117.00, maintaining an Outperform rating. The firm cited improving demand conditions in the lithium market as a key factor.
In related developments, Ganfeng Lithium Group’s chairman forecasted a 30% growth in lithium demand by 2026. This announcement led to a spike in lithium prices in China, with the most-active lithium carbonate contract rising 9% on the Guangzhou Futures Exchange. These recent developments reflect a positive outlook for the lithium industry, with Albemarle being a significant player in this sector.
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