Albemarle upgraded to Buy from Hold at Berenberg

Berenberg upgraded Albemarle to Buy from Hold with a price target of $160, up from $130. The company’s fiscal 2024 guidance was “underwhelming” and followed by a surprise $2.3B convertible preferred stock issuance, the analyst tells investors in a research note. However, the firm think both events “have reset market expectations for a fresh start.” From here, it expects growing lithium volumes, upside to lithium prices and no need for a further equity raise. Moreover, recent pessimism regarding electric vehicle sales is a contrarian buy sign as the fundamental growth story for lithium miners is unchanged, adds Berenberg.