This Albemarle Analyst Turns Bullish On Improving Structural Fundamentals

Albemarle Corp's (NYSE:ALB) stock has declined by around 14% from its peak, presenting "an attractive entry point for a company that has executed through the downturn and is positioning for recovery," according to Bank of America Securities.

The Albemarle Analyst: Analyst Rock Hoffman upgraded the rating from Neutral to Buy and raised the price target from $167 to $190.

The Albemarle Thesis: While the company's share price had earlier risen partly due to the ongoing rise in lithium spot prices, "recent developments suggest broader support," Hoffman said in the upgrade note.

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Albemarle's structural fundamentals are improving, he stated.

The company reported its fourth-quarter results ahead of estimates, "supported by strong Energy Storage volumes," the analyst mentioned.

While delivering annualized cost savings of $450 million, Albemarle guided to a further $100-$150 million of "incremental cost and productivity improvements," supporting full-year EBITDA guidance of $2.4-$2.6 billion, much higher than consensus of $1.7 billion, he further wrote.

ALB Price Action: Shares of Albemarle had risen by 1.75% to $169.26 at the time of publication on Tuesday.

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