Albemarle (ALB)

Feb 23, 2022Trade Ideas

Crisis may be opportunity in Albemarle (ALB).

For one, after gapping from about $250 to $191.85, the stock appears to have caught strong support dating back to late July 2021. Two, we have to consider that lithium prices are only pushing higher, especially with the electric vehicle boom.

Remember, countries all over the world want a greener future, and millions of emission free electric vehicles on the roads. Even major automakers are adopting EV models, replacing fleets of gas guzzling autos. Unfortunately, there’s not enough supply to meet demand, which means lithium prices will push higher, which could lead to ALB pushing higher, too.

From a current price of $191.85, we’d like to see ALB refill its gap around $250, near-term.

Even Deutsche Bank analyst David Begleiter says the pullback is overdone.

As noted by TheFly.com, “The analyst says lithium demand is growing 40% per year through 2025 and that the stock’s valuation is reasonable post the selloff. He views the pullback as overdone and recommends buying Albemarle.”

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