Albemarle price target lowered to $199 from $200 at KeyBanc

KeyBanc lowered the firm’s price target on Albemarle to $199 from $200 on lower earnings, while keeping an Overweight rating on the shares. While the firm acknowledges destocking across the lithium chain is likely to continue, it remains constructive on Albemarle’s earnings trajectory in 2024-plus as the current level of prices is unsustainable and volumes should continue to grow throughout the decade. KeyBanc maintains that its long-term price assumption of $20,000-$21,000/ton is more realistic than the current market view of $10,000-$15,000/ton as this level falls well below reinvestment economics.