Albemarle Corporation Shares Down 5% Following 2021 Investor Day

Albemarle Corporation (NYSE:ALB) shares were trading 5% lower today following the company’s 2021 Investor Day.

Analysts at Oppenheimer increased their price target on the company’s shares to $296 from $250, mentioning they are encouraged by the ongoing effort on cost optimization, including around $100 million in annual operating savings and more than 50% trimming in Lithium capex.

According to the analysts at Oppenheimer, they continue to see significant operating leverage in Albemarle's model, especially if it divests its Catalyst business and increases its Lithium and Bromine capacity.

Analysts at Deutsche Bank also provided an update on the company, noting that with the lithium market entering a multi-year period of tightening that should support steadily rising prices, 2 new world-scale projects starting up by Q1/22 that will increase Albemarle's lithium capacity by more than 80% and the largest, most diverse lithium resource base in the world that provides more "shots on goal" than any other company, they believe the company is well-positioned to capitalize on the forecasted 31% compound growth in lithium demand through 2025.