Benchmark lithium costs soared previous $80K/ton in November and presently commerce at ~$67K/ton, and buyers ought to get some concept of what is in retailer for the metallic when Albemarle (NYSE:ALB) hosts an investor occasion on January 24 which Deutsche Bank’s David Begleiter believes will likely be bullish (LIT).
A strong long-term outlook for pricing will assist boost Albemarle (ALB) shares, the analyst stated Tuesday, calling the inventory a “catalyst purchase” forward of the occasion the place the corporate will overview its company technique, five-year outlook and 2023 monetary steering.
The firm can produce ~175K metric tons/12 months of lithium merchandise, or 25%-30% of world capability, and it has plans to greater than double its capability over the rest of this decade, Begleiter famous, score the inventory as a Buy with a $290 worth goal.
Albemarle (ALB) presently trades at ~9x estimated 2023 earnings; over the previous few years, the inventory has traded at a median of ~26x estimated present 12 months earnings.
Albemarle (ALB) could also be pricing in a collapse of lithium carbonate equal costs from $80K/ton to $20K/ton, Ricardo Fernandez writes in an evaluation revealed just lately on Seeking Alpha.