JPMorgan Raises Albemarle Price Target to $195 as Lithium Prices Surge 70%
JPMorgan analyst Jeffrey Zekauskas raised Albemarle’s price target to $195 from $80 while maintaining a Neutral rating, reflecting a shift in lithium sentiment after prices jumped 70% in China since early 2025. A 65% CapEx cut to $434M over nine months drove operating cash flow up 57% to $356M.
1. Price Target Increase by JPMorgan
On January 28, JPMorgan analyst Jeffrey Zekauskas raised his price target on Albemarle from $80 to $195 while retaining a Neutral rating, signaling renewed confidence in the company’s valuation as lithium markets recover.
2. Lithium Price Rally Boosts Sentiment
Lithium carbonate and hydroxide prices in China have climbed roughly 70% since early 2025, with gains spreading to other regions as lower interest rates and potential stimulus prospects release pent-up demand.
3. Significant CapEx Reduction Supports Cash Flow
Albemarle slashed capital spending to $434 million in the first nine months, down from $903 million a year earlier, and expects about $600 million in full-year 2025 CapEx; this reduction fueled a 57% increase in operating cash flow to $356 million.
4. Q4 Earnings Preview
Albemarle is set to report fourth-quarter results on February 11, with investors focused on volume trends, pricing momentum and cash generation following recent cost-control measures.