IB Net Payout Yields Model

Albemarle: Lithium Weakness Will Pass

  • Albemarle has fallen to yearly lows due to lithium oversupply fears.
  • The company failed on a bid to acquire Liontown Resources adding to the unwarranted negative on the lithium miner. 
  • The stock is cheap based on long-term growth targets, placing the stock at just above 2x '27 adjusted EBITDA targets.
  • Out Fox The Street members get exclusive access to our real-world portfolios. See all of our investments here » 
Lithium miner stocks have collapsed in the last month due to lower metal prices and fears of an oversupply, as some EV productions ramps have slowed down. Naturally, Albemarle (NYSE:ALB) has fallen to 52-week lows in the process, in part due to a failed bid adding to the negativity around the company and the ability to meet financial targets. My investment thesis remains ultra Bullish on the lithium miner, especially with the stock trading at the lows and the long-term supply dynamics unaltered.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


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