UBS upgraded Albemarle to ‘Buy’ from ‘Neutral’ with a price target of $185, up from $107.
- UBS’ new price target represents a potential upside of about 55% from the stock’s closing price on Thursday.
- UBS sees higher energy storage demand and years of slower western capacity additions pushing the lithium markets into deficit in 2026.
- Lithium prices should move up through the year, which should be a positive driver for Albemarle shares, the analyst said.
Shares of Lithium producer Albemarle (ALB) traded 6% higher on Friday afternoon after UBS highlighted a possible Lithium supply deficit next year.
The firm upgraded Albemarle to ‘Buy’ from ‘Neutral’ with a price target of $185, up from $107.
The new price target represents a potential upside of about 55% from the stock’s closing price on Thursday.
UBS’ Rationale
UBS sees higher energy storage demand and years of slower western capacity additions pushing the lithium markets into deficit in 2026. Lithium prices should move up through the year, which should be a positive driver for Albemarle shares, the analyst told investors in a research note. UBS now sees a lithium supply deficit in the second half of 2026.
Lithium prices have been aided by an increase in demand from the rise of electric vehicles and large-scale battery storage. Lithium spot prices are now more than 50% above a June low.
During the company’s earnings call in November, CEO Kent Masters said that overall demand for lithium remains “robust.”
“Overall demand for lithium remains robust, up more than 30% year-to-date, supported by the energy transition and rising global demand for electric vehicles and grid storage,” the CEO said.
According to data from Koyfin, 18 of 26 analysts covering Albemarle have a ‘Hold’ rating on the stock. While seven analysts rate the stock ‘Buy’ or higher, one rates it a ‘Sell.’ The average price target on the stock is at $108.14, representing potential downside from Thursday’s close.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around ALB stayed within the ‘bearish’ territory over the past 24 hours, while message volume stayed at ‘low’ levels.
ALB stock is up by 47% this year and by about 25% over the past 12 months.
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