Albemarle stock caught another upgrade as the lithium market continues its surprising EV-less recovery.
Mizuho analyst John Roberts upgraded shares to Buy from Hold on Tuesday evening. His price target stayed at $130.
Albemarle stock was up 3% in premarket trading, at $100.55, while S&P 500 and Dow Jones Industrial Average futures were up 0.2% and 0.3%, respectively.
Roberts isn't focused on rising lithium demand coming from electric vehicles. Lithium is a key component in EV batteries, and the EV boom following the Covid-19 pandemic pushed benchmark prices to about $90,000 per metric ton. (Prices around $15,000 to $20,000 per ton are more normal, based on history.)
The boom led to overbuilding, sending lithium prices below $10,000 per metric ton in 2025. Things have improved, with recent prices closer to $16,000.
Battery storage applications are now driving demand, said Roberts. "Strong [storage] outlook lifted 2027 demand by about 10% versus [our] previous estimate, while supply (including inventory drawdown) was about flat."
That is tightening up his supply/demand balance. Now, he sees 2027 lithium prices at about $22,500 per ton, up from prior forecasts of $18,375 per ton.
The impact of higher prices on Albermarle earnings can't be overstated. The company earned $22 a share when prices averaged close to $50,000 per ton. Albemarle lost money in 2025, with prices below $15,000 per ton.
For now, Wall Street expects 2027 earnings per share of about $10. That number will rise if lithium prices move higher.
With the upgrade, 70% of analysts covering Albemarle stock rate shares Buy, according to FactSet. That's up from 32% a year ago. The average Buy-rating ratio for S&P 500 stocks typically ranges from about 55% to 60%.
The average analyst price target for Albemarle stock is about $164, up from about $93 a year ago.
Coming into Wednesday's trading, Albemarle stock was down about 31% year to date. Shares peaked in the spring, above $220 a share, but sold off as lithium prices weakened from about $30,000 per metric ton to $16,000 per ton.
The drop is why Roberts could upgrade shares while leaving his price target unchanged.
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