BMO Trims Albemarle Target but Sticks With Outperform
Albemarle closed at $102.75 on Oct. 7, down 52% from its April high. BMO cut its target to $175 from $200 but kept an Outperform rating, implying 70% upside. Management lowered Q3 Energy Storage guidance on weaker volumes and pricing, and 2027 consensus EPS has declined.
Albemarle ended Oct. 7 at $102.75, roughly half its April 16 closing high of $215.62. BMO lowered its target to $175 from $200 on Oct. 6 while retaining an Outperform rating, still implying about 70% upside. UBS and Argus also reduced targets that week but kept Buy ratings.
Management expects third-quarter Energy Storage sales and adjusted EBITDA to fall sequentially on softer volumes and pricing. Over 90 days, the 2027 consensus EPS estimate slipped to $11.00 from $12.98. After a June fire at Talison's CGP3 plant, the company expects 225 to 235 kilotons of 2026 Energy Storage sales.
The BMO call and lithium outlook could affect investors holding Albemarle shares, employees and communities tied to lithium mining, and battery/EV supply chains. If prices stay weak, project spending or hiring may slow; if they recover, costs for batteries and EVs may face pressure. Analysts' target changes may influence sentiment but not directly determine outcomes.