Albemarle (ALB)

Jan 10, 2022Trade Ideas

Albemarle (ALB) has become ridiculously oversold.

But we don’t expect that to be the case for long.

With the EV boom heating up, and supply-demand still a major issue, ALB could revisit prior highs around $290, near-term.

Helping, analysts at Berenberg raised their price target to $298 from $280 a share. “All-time-high lithium prices helped Albemarle deliver upgraded guidance for 2021 and the company is achieving ‘solid execution’ of new lithium capacity,” they said, as noted by

Even better, ALB recently posted solid earnings and guidance.

For Q3 2021, the company reported adjusted EPS of $1.05 on $831 million in sales. Analysts were looking for 77 cents on $765 million in sales. ALB also increased full-year guidance, seeing adjusted earnings of about $4 a share on $3.35 billion in sales. Prior guidance called for EPS of $3.53 on $3.25 billion in sales.

“Despite supply chain challenges and increased raw material costs last quarter, we continued to deliver solid revenue and adjusted EBITDA growth,” said Albemarle CEO Kent Masters. “In October, we achieved first lithium carbonate production at our new La Negra III/IV conversion facility. We are making investments to add significant conversion capacity in China, initially targeting up to 150,000 metric tons of lithium hydroxide per year which will provide high-return growth opportunities aligned with the increasing demand from our customers.”

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