Albemarle is expected to recover as lithium demand increases, according to Mizuho. The firm has upgraded the miner from neutral to outperform and set a $130 price target, implying roughly 33% upside from Tuesday’s closing price. “We are raising Albemarle’s rating to outperform because robust demand for battery energy storage systems has shifted the market to a favorable balance,” analyst John Roberts noted in a Tuesday client report. “Albemarle is the lowest‑cost lithium producer, and its stronger balance sheet offers downside protection while providing flexibility to invest as project returns improve.” The stock has declined about 31% year‑to‑date, largely due to weaker lithium prices. Lithium, a key raw material for batteries, is projected to rise to $22,500 per metric ton by the end of 2027, up from $18,375 now, Mizuho says. Demand could intensify further if regulatory hurdles delay Contemporary Amperex Technology’s upstream production restart, Roberts added. “Although lithium is a volatile, capital‑intensive commodity, the near‑term supply‑demand outlook has tightened; demand exceeds expectations while new supply is constrained by lengthy project lead times and reduced capital spending,” he wrote. Mizuho’s recommendation aligns with market consensus. Of the 23 analysts covering Albemarle, 15 have a buy or strong‑buy rating, and eight have a hold, according to LSEG data.
Source link
