Wells downgrades Albemarle on deteriorated earnings outlook

Wells Fargo downgraded Albemarle to Equal Weight from Overweight with a price target of $100, down from $145. The firm says its confidence in the company’s earnings outlook has deteriorated as lithium prices have fallen below expectations. Given risks to electric vehicle demand, lithium supply could outweigh demand longer than expected, the analyst tells investors in a research note. Additionally, the firm views Albemarle’s recent convertible equity raise versus other forms of capital as a negative, reflecting potential cash flow risks ahead.