Albemarle Corporation (NYSE:ALB) Faces Challenges Amid Declining Lithium Prices

• Ben Kallo from Robert W. Baird sets a price target of $60 for Albemarle Corporation (NYSE:ALB), indicating a potential downside of approximately -16.18%.
• Albemarle's second-quarter earnings are expected to show a 13.1% revenue decline year-over-year, with the Energy Storage unit facing a significant sales drop of 28.4%.
• Despite a challenging market, Albemarle's cost-saving measures are anticipated to support profit margins, highlighted by a positive earnings surprise of 71% in the most recent quarter.

Albemarle Corporation (NYSE:ALB) is a global leader in the production of specialty chemicals, focusing on lithium, bromine, and refining catalysts. The company is a key player in the energy storage market, especially in lithium production for electric vehicle batteries. It faces competition from chemical companies like SQM and Livent.

On July 29, 2025, Ben Kallo from Robert W. Baird set a price target of $60 for Albemarle, while the stock was trading at $71.58. This represents a potential downside of approximately -16.18%. The bearish outlook comes as Albemarle prepares to announce its second-quarter earnings, with expectations of a 13.1% revenue decline compared to the previous year.

Despite challenges from declining lithium prices, Albemarle's cost-saving and productivity measures are expected to support its profit margins. The Energy Storage unit is projected to see a significant sales drop of 28.4%, while the Specialties segment may experience an increase of 11.3%. Over the past year, Albemarle's shares have decreased by 19.2%, reflecting the company's struggles.

Historically, Albemarle has missed the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average negative earnings surprise of 136%. However, the company delivered a positive earnings surprise of 71% in the most recent quarter. This mixed performance adds to the uncertainty surrounding Albemarle's future prospects.

Currently, Albemarle's stock is priced at $71.55, having decreased by 4.31% today. The stock has seen a low of $71.01 and a high of $74.29 during the day's trading. Over the past year, the stock has reached a high of $113.91 and a low of $49.43. Albemarle's market capitalization stands at approximately $8.42 billion, with a trading volume of 3,084,052 shares.