UBS Downgrades Albemarle to Sell

UBS has downgraded Albemarle (ALB) to Sell from Neutral, slashing its price target to $57, citing a bearish outlook on lithium prices and earnings potential.

• UBS expects lithium prices to remain below $10/kg through 2026 — well below the $17–$18/kg range reflected in current market expectations.

• The firm sees a persistent supply surplus, delaying any material price rebound and putting pressure on Albemarle’s margins.

• UBS’s 2026 EBITDA forecast is 14% below consensus, suggesting the Street may be overestimating Albemarle’s medium-term performance.

• Despite recent price upticks in lithium, UBS cautions against optimism, stating the market may still need to reset expectations.

This downgrade underscores the disconnect between Albemarle’s valuation and lithium market fundamentals, signaling further downside unless supply dynamics shift.