Summary

• Albemarle Corporation is rated Buy with a 12-month price target of $205, reflecting strong earnings leverage to recovering lithium prices.
• Q1 results demonstrate robust financial improvement: net sales up 33% YoY, adjusted EBITDA up 148%, and FCF at $248 million, driven by higher lithium prices and volumes.
• Grid-scale energy storage is emerging as a major lithium demand driver, with battery order books full through 2027 and demand growth trending above guidance.
• ALB's healthy balance sheet—$2.7B liquidity, 1x net debt/EBITDA, no major maturities until 2028—supports profitable growth and cushions against commodity price volatility.

Investment Thesis

For nearly two years, Albemarle Corporation (ALB) has represented a patience play, with Albemarle's earnings falling with lithium prices from their 2022 peak. In Q1, net sales increased 33% YoY to $1.4 billion, adjusted EBITDA increased by 148% to $664

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