UBS Downgrades Albemarle (ALB) to Sell, 'Lithium still challenged'

UBS analyst Joshua Spector downgraded Albemarle (NYSE: ALB) from Neutral to Sell with a price target of $57.00 (from $64.00).

The analyst comments "We downgrade ALB to Sell from Neutral. We leverage work of the global UBS lithium team and believe lithium markets will remain oversupplied through 2026. We think ALB realized pricing moves up modestly Y/Y, but our 2026 lithium price forecast is 6-15% below consensus, putting our 2026EEBITDA ~14% below cons. We believe the market is pricing in an EBITDA level closer to 2026 cons. expectations, and a mid-cycle lithium price of $17-18/kg. We believe spot pricing stays <$10/kg through 2026, and only get into the mid-teens later in the decade. We expect some investors will want to buy the dip, but we think estimates need to rebase lower and expectations will decline in a lower for longer scenario. We see more downside risk to shares medium term."

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 $74.27 yesterday.

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