After a roughly 14% pullback from peak levels, the firm views recent weakness as a more attractive entry point.
Albemarle’s fourth-quarter results topped guidance and expectations, helped by stronger energy storage volumes as customer destocking eased. The company is delivering about $450 million in annualized cost savings and expects an additional $100 million to $150 million in productivity gains. Based on current pricing, Albemarle is guiding for full-year EBITDA of $2.4 billion to $2.6 billion, well above consensus near $1.7 billion and modestly ahead of BofA’s prior estimate.
The bank said supply and demand trends are tightening the market. Chinese permitting changes are keeping higher-cost lepidolite supply offline for longer, while battery installations are increasing, supporting lithium demand. It expects pricing to remain constructive through the year, though volatile, and said current levels support profitable production across most of Albemarle’s existing and planned assets.
Bank of America raised its 2026 EBITDA estimate to about $2.43 billion from $2.31 billion, driven by higher pricing assumptions and additional cost savings. It also expects margins to expand to 41% from 36%, helped by manufacturing efficiencies and supply chain improvements that offset costs tied to the Kemerton site and weaker performance at Ketjen.
source https://www.investing.com/news/stock-market-news/bofa-upgrades-albemarle-as-higher-lithium-prices-cost-cuts-to-lift-earnings-4509410
