Update shared on23 Sep 2025
Fair value Increased 1.38%Analysts have slightly raised Albemarle’s price target from $85.47 to $86.65, citing increased uncertainty around global lithium supply due to China mine closures, which reduces downside risk and may support a sustained lithium price recovery.
Analyst Commentary
- China mine site closures have increased uncertainty around global lithium supply, raising the potential for sustained improvement in lithium prices.
- Previous expectations of prolonged low lithium prices are now less certain due to shifting supply dynamics in China.
- Bullish analysts are raising price targets to reflect reduced downside risk and possible lithium market recovery.
- Some see upside risk to Albemarle’s performance if supply disruptions persist, which could positively impact earnings.
- Bearish analysts remain cautious, citing sector risks and maintaining neutral or downgraded ratings despite improved price outlook.
What's in the News
- Chilean authorities have launched an official investigation into a major accident at Albemarle’s La Negra lithium processing facility after a burst acid pipe, following complaints from a local lawmaker (Reuters).
- Multiple market participants report that part of production at Albemarle's Chilean lithium operations has been suspended due to the safety incident (Benchmark Mineral Intelligence via LinkedIn).
- Albemarle's Chilean facility accounts for around 24% of the nation’s 2025 lithium output and about 3% of China's annual lithium demand, raising concerns over global supply disruptions (Benchmark Mineral Intelligence via LinkedIn).
- Albemarle stated that it does not expect the Chile incident to impact sales at this time (Bloomberg).
- News of the incident has contributed to recent strength in lithium carbonate futures prices, reflecting market sensitivity to supply risk (Benchmark Mineral Intelligence via LinkedIn).
Valuation Changes
Summary of Valuation Changes for Albemarle
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $85.47 to $86.65.
- The Consensus Revenue Growth forecasts for Albemarle remained effectively unchanged, moving only marginally from 11.5% per annum to 11.3% per annum.
- The Future P/E for Albemarle remained effectively unchanged, moving only marginally from 11.90x to 12.07x.
Disclaimer
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