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Albemarle: Ride The Lithium Surge

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Update - Jan. 7, 2026
Albemarle rallied from $50 to $150 before Baird became Bullish. These analysts are always late to these calls. 

  • Albemarle (ALB) +2.2% to its best level in more than two years in Wednesday's trading, as high as $164.98, as Baird upgraded shares to Buy from Hold with a $210 price target, up from $113, believing demand strength from stationary energy storage can boost lithium prices and the company's earnings.
  • "We are incrementally positive given the recent increase in lithium prices... and our view that demand strength stemming from stationary storage will continue to propel ALB higher," Baird analyst Ben Kallo wrote, raising his FY 2026 earnings estimate to $1.26/share from a loss of $0.44/share.
  • Battery-grade lithium carbonate prices have increased to nearly $16/kg from ~$11/kg a month ago on demand tied to energy storage and supply rationalization in China, and prices above $15 is a level Kallo believes is meaningfully supportive for Albemarle given its operating leverage to lithium pricing, particularly after recent cost cuts.



Original article posted on Dec. 1

  • Albemarle is rebounding as lithium prices rise and demand remains strong, supporting a bullish investment thesis.
  • The lithium miner has achieved positive cash flow even at low lithium prices, demonstrating operational sustainability and financial discipline.
  • ESS demand is contributing to a boost in lithium prices, with soaring demand for stationary storage boosting an already strong EV market.
  • The stock remains undervalued at the potential of trading at only 6x adj. EBITDA targets in 2026.

Albemarle Corporation (ALB) continues to rally back from the dead due to higher lithium prices and market realization that demand remains strong. A big key to the investment story is the lithium miner becoming cash flow positive even with low lithium prices while now set to thrive due to soaring prices. My investment thesis remains ultra Bullish on the stock, even at yearly highs.

Read the full article on Seeking Alpha. 

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

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