Albemarle clings to gains after raising guidance for second time this month (NYSE:ALB)

Albemarle clings to gains after raising guidance for second time this month (NYSE:ALB)

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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.

Also, Deutsche Bank lifted its target to $320 from $290, and RBC Capital raised its PT to $314.

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.

Originally Posted on: https://seekingalpha.com/news/3842330-albemarle-clings-to-gains-after-raising-guidance-for-second-time-this-month?source=feed_tag_commodities
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