Wall St futures flat amid US-China trade jitters; bank earnings in focus
Investing.com - BofA Securities downgraded Albemarle (NYSE:ALB) from Buy to Neutral on Monday, while raising its price target to $100 from $95, citing fair valuation following a recent 15% share price increase. According to InvestingPro data, the stock has shown remarkable momentum with a 60% return over the past six months, trading near its Fair Value.
The lithium producer’s stock rally was driven by two key developments: a U.S. Government investment in the Thacker Pass lithium project and headlines about Chinese export restrictions on lithium batteries, according to BofA analyst Rock Hoffman. The company’s market capitalization now stands at $11.3 billion, though InvestingPro analysis indicates analysts don’t expect profitability this year, with forecasted EPS at -$1.84.
BofA believes investors have misinterpreted both pieces of news as positive catalysts for Albemarle . The firm noted retail investors wrongly equated Lithium Americas’ deal renegotiation with MP Materials’ arrangement, while others confused China’s export controls on lithium batteries with restrictions on lithium chemicals.
The recent share price movement has brought Albemarle stock near BofA’s price target, leaving limited upside potential. The firm maintained that the lithium market is near its trough and long-term growth drivers remain intact.
BofA warned that the headline-driven momentum could fade or reverse, but emphasized it remains dynamic in its assessment of Albemarle’s prospects.
In other recent news, Albemarle has been the focus of several significant developments. TD Cowen has raised its price target for Albemarle to $85 from $70, maintaining a Hold rating, while anticipating a decline in the company’s third-quarter 2025 EBITDA margins due to reduced volumes sold through long-term contracts. However, Albemarle is expected to benefit from increased spot carbonate and spodumene prices. Additionally, Albemarle has announced changes to its organizational structure, appointing Mark Mummert as chief operations officer to enhance operational efficiency. Bank of America continues to maintain a Buy rating on Albemarle, citing the potential upside amid a rally in lithium prices and forecasting further increases in lithium carbonate spot prices in the coming years.
Meanwhile, the suspension of production at CATL’s Jianxiawo lithium mine has affected the global lithium supply, representing 2-3% of the worldwide capacity. This development has led to a surge in U.S.-listed shares of lithium companies. The mine’s closure is expected to last several months as CATL negotiates permit renewals with the Chinese government. These recent developments highlight the dynamic environment in which Albemarle operates, influenced by both internal organizational changes and external market conditions.
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