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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.

Image by Alexsander-777 from Pixabay

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.

While we acknowledge the potential of ALB as an investment, 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 a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 15 Dividend Stocks Paying 4%+ Yield in 2025 and 11 Worst Performing Dividend Stocks Year-to-Date.

Disclosure: None.

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