With a market cap of $7.2 billion, Albemarle Corporation (ALB) is a global leader in specialty chemicals with strong positions across diverse, high-growth end markets. The company operates through three key segments - Energy Storage, Specialties, and Ketjen, offering advanced chemical solutions for industries including energy, automotive, electronics, and pharmaceuticals.
Shares of the Charlotte, North Carolina-based company have significantly underperformed the broader market over the past 52 weeks. ALB has declined 52.5% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.9%. Moreover, Albemarle stock has dipped 28.5% on a YTD basis, compared to SPX's marginal drop.
Looking closer, the specialty chemicals company has also lagged behind the Materials Select Sector SPDR Fund's (XLB) 5.8% decrease over the past 52 weeks.
Shares of Albemarle rose 1.3% on Apr. 30 following its Q1 2025 results, as the company reported an adjusted loss of $0.18 per share, narrower than the consensus estimate. Despite a 21% year-over-year revenue decline to $1.1 billion, investors were encouraged by strong cash from operations of $545 million, up over fivefold, and a 27% sequential increase in cash reserves. Additionally, Albemarle achieved about 90% run-rate progress toward its $350 million cost and productivity improvement target.
For the current fiscal year, ending in December 2025, analysts expect ALB's adjusted loss per share to grow 38.9% year-over-year to $1.43. The company's earnings surprise history is mixed. It beat the consensus estimates in one of the last four quarters while missing on three other occasions.
Among the 25 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” 14 “Holds,” and two “Strong Sells.”
This configuration is slightly less bullish than three months ago, with nine “Strong Buy” ratings on the stock.
On May 7, Scotiabank maintained a “Sector Perform” rating on Albemarle while lowering its price target to $65, citing concerns over elevated risks like balance sheet leverage, potential capital raises, and prolonged weak pricing.
As of writing, ALB is trading below the mean price target of $83.20. The Street-high price target of $145 implies a potential upside of 135.5% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
