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    Albemarle (ALB) Valuation Check After UBS Upgrade and Brighter Lithium Market Outlook

    Simply Wall St·12/08/2025 13:14:02
    語音播報

    Albemarle (ALB) is back on traders radar after a UBS upgrade to Buy helped power a fresh leg higher in the stock, with investors leaning into a recovering lithium story.

    See our latest analysis for Albemarle.

    The UBS call lands on top of an already powerful rebound, with Albemarle’s 30 day share price return of roughly 29 percent feeding into a 90 day gain above 70 percent, even as the three year total shareholder return remains deeply negative. This is a classic sign of momentum rebuilding after a prolonged reset.

    If Albemarle has you rethinking battery and energy exposure, it could be worth scanning other lithium adjacent names, alongside fast growing stocks with high insider ownership, for fresh, high conviction ideas.

    With shares already up sharply and UBS now calling for a lithium deficit and higher prices ahead, the key question is whether Albemarle is still trading below its true potential or if the market has already priced in the next wave of growth.

    Most Popular Narrative Narrative: 16.8% Overvalued

    With Albemarle last closing at $125.19 against a most followed fair value estimate of about $107, the narrative points to a stretched setup that still leans on a detailed recovery roadmap.

    The analysts have a consensus price target of $85.467 for Albemarle based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $200.0, and the most bearish reporting a price target of just $58.0.

    Read the complete narrative.

    Curious how a loss making chemicals name earns a premium style valuation? The narrative focuses on powerful revenue compounding, sharp margin swing and a punchy future earnings multiple. Want to see exactly which profitability ramp and growth runway are doing the heavy lifting in that fair value math?

    Result: Fair Value of $107.14 (OVERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, sustained lithium oversupply and weaker than expected EV demand could keep prices subdued, undermining margin recovery assumptions and delaying the earnings rebound embedded in this setup.

    Find out about the key risks to this Albemarle narrative.

    Build Your Own Albemarle Narrative

    If this perspective does not quite match your own, or you would rather dig into the numbers yourself, you can build a custom view in just a few minutes: Do it your way.

    A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding Albemarle.

    Looking for more investment ideas beyond Albemarle?

    Do not stop at one opportunity; use the Simply Wall St screener to quickly surface focused stock ideas that fit your strategy before the market moves first.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.