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 to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ALB and that has 100x upside potential, check out our report about this cheapest AI stock.

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