2024-05-09 17:26:06 ET
Summary
- Albemarle Corporation's financials and stock price are impacted by the current lithium pricing, but long-term demand for lithium remains bullish due to EVs and renewable power demand.
- Despite a slump in sales, global EV sales have grown 21% YTD, indicating solid demand growth for lithium.
- Albemarle stock trades at just 7.5x adjusted EBITDA targets for more normalized lithium prices during a bull market.
As with any commodity stock, a company is dependent on the underlying supply/demand scenarios of the commodity as the driving force for the financials of the related business. Albemarle Corporation ( ALB ) is no exception to this scenario, with the current lithium pricing impacting the financials and stock price. My investment thesis remains Bullish on the long-term demand for the commodity due to electric vehicles ("EVs") and renewable power demand for lithium....
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Albemarle: Lithium Prices Will Rise Again