Albemarle Stock Looks Like a Good Buy Amid EV Shift

In the last year, Albemarle stock has risen 125 percent. Is the stock a buy or sell at this price? How's the company's outlook and what can investors expect?

Ambrish Shah - Author

Jan. 6 2021, Updated 9:11 a.m. ET

is albemarle a good stock to buy
Source: istock, Albemarle Facebook

On Jan. 5, Albemarle stock rose by 6.8 percent, while the S&P 500 rose by 0.7 percent. The stock was up $10.30 from its previous closing price of $152.63 on a volume of 2,579,392 shares. Over the past year, the S&P 500 has risen by 15.1 percent, while Albemarle stock has gained 125 percent. Is Albemarle stock a buy or sell at this price?

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On Jan. 5, Albemarle stock rose after Stephen Richardson of Evercore ISI raised his target price on the stock from $86 to $160. The analyst also upgraded the stock from “underperform” to “in-line.” According to TheFly, “The electrified future is arriving faster than previous expectations,” Richardson said in a research note. “The indisputable truth of the lithium market is that demand will treble sometime around 2025 and that current market indicated prices are insufficient to incentivize supply.”

albemarle outlook
Source: istock
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Albemarle on Stocktwits

Albemarle stock has become a major talking point on social media platforms. An investor named DigitalProspector on Stocktwits thinks that the next two years could be the sweet spot for large lithium miners. In the near term, Albemarle stock will likely trade sideways. The major gains have already been priced into the share price. Another user by the name of TheRiskyInvestor said that Albemarle stock could be a portfolio winner as it could create huge value for shareholders.

Albemarle pays a dividend

Albemarle stock pays an annual dividend of $1.54 per share with a dividend yield of 0.95 percent.

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Albemarle’s valuation

On Jan. 5, Albemarle stock rose by 6.8 percent and closed at $162.93. At that closing price, the market capitalization was $17.3 billion. Albemarle’s forward PE ratio is 35.97.

Is Albemarle a Good Stock to Buy?
Source: Albemarle Facebook
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Albemarle’s stock forecast

Albemarle stock has risen by 11.4 percent in the last five days and by 125 percent in the last year. The stock is trading 2.3 percent below its 52-week high of $166.78 and 233.3 percent above its 52-week low of $48.89.

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According to estimates compiled by CNN, analysts' median target price is $120.50 for Albemarle, which is 25.6 percent below its current stock price. Among the 24 analysts tracking Albemarle, seven recommend a buy, eight recommend a hold, and nine recommend a sell. The highest target price of $180 is 11.2 percent above the stock's current price, while the lowest target price of $50 is 69.1 percent below the stock's current price.

Albemarle stock looks like a buy

Albemarle stock looks like a buy based on its strong growth outlook. The company supplies lithium, which is a major component in EV (electric vehicle) battery manufacturing. The demand for EV batteries will likely surge since the EV market is going to be explosive in the next five years. The company’s lithium business accounts for about 35 percent of its sales.


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