Albemarle price target lowered to $132 from $151 at KeyBanc

KeyBanc lowered the firm’s price target on Albemarle to $132 from $151 and keeps an Overweight rating on the shares. Albemarle is adjusting its operational and balance sheet posture for a continued trough environment, the firm says. If customers are not willing to underwrite new capacity, lithium producers are not willing to invest. Although capacity growth in China continues, it is too likely to slow under the weight of negative margins, KeyBanc adds. The firm is encouraged by management’s proactive restructuring of investments and operations, and also by the maintained 2024 guidance. Still, it senses a meaningful turnaround in the lithium market is not likely in Q3, but some improvement is possible in Q4 and more so in 2025.