Albemarle Corp (ALB) saw a 7.54% increase in stock price on Wednesday, closing at $87.68. UBS raised its price target for ALB to $89 from $62, with a 9.16% upside potential. The rating was upgraded to “neutral” from “sell,” reflecting optimism over China’s lithium supply stabilization efforts.

UBS predicts a 20% increase in lithium prices by 2026 due to China’s supply interventions. Around 100,000 metric tons of net lithium supply could be reduced next year, cutting oversupply by 6% and potentially raising prices to $12-$13 per kg. UBS believes ALB’s outlook is more balanced with room for growth.

While ALB shows potential, UBS suggests AI stocks may offer higher returns with less risk. They recommend exploring a cheap AI stock that benefits from Trump tariffs and onshoring. For more information, check out their report on the best short-term AI stock.

Read more at Yahoo Finance: Albemarle (ALB) Gets Boost From Rating, PT Upgrade