Bank of America Maintains Buy on Albemarle (ALB), Sees Lithium Price Momentum Driving Upside

Albemarle Corporation (NYSE:ALB) ranks among the best mid-cap materials stocks to buy now. Bank of America maintained its Buy rating on Albemarle Corporation (NYSE:ALB) on August 11 with a price target of $84, pointing to possible upside owing to the near-term momentum in lithium price.

The investment bank stated that the price of lithium has “rallied hard off a June bottom” and anticipates further price increases due to recent news regarding CATL. According to BofA’s current model, spot prices for lithium carbonate are expected to hit $9.5/kg in 2026, surpass $15/kg by 2027, and reach $20/kg by 2030.

Although BofA’s price target remains $84, the firm pointed out that Albemarle Corporation (NYSE:ALB) is valued at $109 based on its discounted cash flow analysis (NAV) component, indicating a substantial potential upside from current levels.

Albemarle Corporation (NYSE:ALB) focuses on engineered specialty chemicals. The company’s dominance in the lithium industry provides it a vital position across the EV supply chain, with EV clients accounting for more than 80% of its sales. Albemarle’s range is further broadened by its position as a pioneer in catalyst products and one of the top three bromine producers.

While we acknowledge the potential of ALB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.