Several analysts raised their stock price targets for Albemarle (NYSE:ALB) on Tuesday after the company raised full-year profit and revenue forecasts for the second time this month.
The world’s largest producer of lithium now forecasts full-year sales of $5.8B-$6.2B, up from previous guidance of $5.2B-$5.6B, due to “additional index-referenced, variable-price contracts for battery grade lithium sales.”
According to Bloomberg, Wells Fargo analysts raised their estimates and stock price target to $320 from $285 to account for strong lithium pricing, with a significant downside risk to guidance seen as unlikely given strong current demand.
KeyBanc lifted its stock PT to $217 from $215, saying Albemarle’s (ALB) view on lithium prices could be conservative, although a short-term downside is possible because of China’s lockdowns.
Albemarle (ALB) shares rose as much as 2.7% in early trading before giving up most of their gains, now +0.6%, but other lithium producers are down, including (SLI) -4.7%, (LAC) -3%, (SQM) -2.8%, (LTHM) -2.6%; ETF: (LIT)
Albemarle (ALB) enjoyed a “fantastic” Q1 and its “lithium growth story is just getting started,” The Outsider writes in a bullish analysis published recently on Seeking Alpha.