Citi Downgrades Albemarle (ALB) to Neutral, 'we see downside to ALB’s realized pricing'

Citi analyst Pat Cunningham downgraded Albemarle (NYSE: ALB) from Buy to Neutral with a price target of $120.00 (from $175.00).

The analyst comments "For ALB, we are cutting our 2024 and 2025 EBITDA estimates ~40% on lower realized lithium prices and slightly lower volume expectations. Our updated estimates prompt a rating downgrade to Neutral. While we think prices are approaching the bottom, we see few near-term catalysts for price appreciation in 1H24. Supply response has been limited to date and we see downside to ALB’s realized pricing from current index prices and renegotiation risk. We expect ALB’s guidance construct will show the extent of realized price declines and potentially flag a weaker volume outlook. Share price reaction will likely hinge on ALB’s conviction on lithium prices and forward growth plans. We also lower our pricing forecasts for LIRC on lower forecast volumes, resulting in our new target price of C$10 (from C$13.5)."

For an analyst ratings summary and ratings history on Albemarle click here. For more ratings news on Albemarle click here.

Shares of Albemarle closed at $114.33 yesterday.

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