Lithium Deficit Could Boost Albemarle (ALB) Stock, Says UBS

Albemarle Corporation (NYSE:ALB) is included among the 15 Best Stocks to Buy for the Long Term.

UBS upgraded Albemarle Corporation (NYSE:ALB) to Buy from Neutral on December 5, and also raised its price target to $185 from $107. The update came as the firm expects growing energy storage demand, coupled with years of slower capacity expansion in the West, to create a lithium market deficit by 2026. Rising lithium prices throughout the year are expected to boost ALB’s stock, and UBS now sees a supply shortfall in the second half of 2026.

Albemarle Corporation (NYSE:ALB) reported strong earnings in the third quarter of 2025, despite a weak lithium price environment. The company posted net sales of $1.3 billion, including an 8% YoY growth in Energy Storage. Adjusted EBITDA came in at $226 million, which grew by 7% due to ongoing cost savings. These results were encouraging to investors as the management also highlighted its cost-cutting actions and divestitures.

As part of its cost-cutting efforts, Albemarle Corporation (NYSE:ALB) reduced its capital expenditures to $434 million in the first nine months of the year, compared with $903 million in the same period last year. Moreover, the company expects CapEx to be approximately $600 million in 2025, down 65% from 2024. These cash management actions provided a strategic benefit to the company’s cash position as the operating cash flow of $356 million grew by 57% from the prior year period.

Albemarle Corporation (NYSE:ALB) is an American specialty chemicals manufacturing company that offers a wide range of related products and services.

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