Scotiabank Upgrades Albemarle (ALB) to Sector Outperform

Scotiabank analyst Ben Isaacson upgraded Albemarle (NYSE: ALB) from Sector Perform to Sector Outperform with a price target of $200.00 (from $85.00).

The analyst comments "OUR TAKE: Positive. If you’ve missed the lithium rally, don't worry too much, we think it’s only the first leg, in what should be a multi-year tightening cycle. Using a scenario-based approach, we see most lithium market balance outcomes pointing to a supply-constrained market mid-term. In other words, even if EV demand growth slightly misses expectations, or, even if BESS doesn’t soar by leaps and bounds, a market inflection appears well-supported, in our view. We have raised our price deck to $20,000/mt LCE by ‘28, with SC6 at $2,150/mt. That said, forecasting demand-driven pricing for nascent commodities like lithium can often be a fool’s game. Accordingly, we may be too conservative on our outlook, especially given that most believe $18,000 to $20,000/mt LCE is incentive pricing. Therefore, watch for fly-up pricing to well-exceed our price deck, at times."

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 $161.29 yesterday.

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