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Benchmark lithium prices soared past $80K/ton in November and currently trade at ~$67K/ton, and investors should get some idea of what’s in store for the metal when Albemarle (NYSE:ALB) hosts an investor event on January 24 which Deutsche Bank’s David Begleiter believes will be bullish (LIT).
A strong long-term outlook for pricing will help boost Albemarle (ALB) shares, the analyst said Tuesday, calling the stock a “catalyst buy” ahead of the event where the company will review its corporate strategy, five-year outlook and 2023 financial guidance.
The company can produce ~175K metric tons/year of lithium products, or 25%-30% of global capacity, and it has plans to more than double its capacity over the remainder of this decade, Begleiter noted, rating the stock as a Buy with a $290 price target.
Albemarle (ALB) currently trades at ~9x estimated 2023 earnings; over the past few years, the stock has traded at an average of ~26x estimated current year earnings.
Albemarle (ALB) may be pricing in a collapse of lithium carbonate equivalent prices from $80K/ton to $20K/ton, Ricardo Fernandez writes in an analysis published recently on Seeking Alpha.
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