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Albemarle (NYSE: ALP) ended Tuesday’s trading as the biggest loser in the S&P 500, -8.7% To its lowest level since October 2020, where Two Wall Street analysts cut their price targets. For the stock.
Lowered stock price to $127 from $170 even while maintaining overweight Lithium prices have remained at or below the lower end of Albemarle’s forecast, said Baird analyst Ben Callow.Alp) guidance, which creates the company’s “weak second quarter” report.
Calo also pointed to concerns about the impact this year’s US election could have on the electric vehicle market, which directly impacts demand for lithium batteries.
The analyst believes that car manufacturing companies Production is likely to be hampered. Or commit to more stringent transition targets after that while waiting for clarity on any potential changes to government tax credits for electric vehicles.
Additionally, UBS analyst Joshua Spector, who rates Albemarle (ALB) stock at Hold, lowered his price target to $109 from $124.
Shares of other lithium producers also fell Tuesday, including Standard Lithium (SLI). -7.6%Sigma Lithium (SGML) -6%Lithium Americas (LAC) -4.1%Arcadium Lithium (ALTM) -3.5%square meter (sq.m.) -3%.
Albemarle (ALB) shares have fallen more than 70% from their record highs in late 2022, when lithium was trading at around $85,000 per metric ton, but prices today have fallen to around $12,500 per ton.
Lithium prices suffered a “significant decline” last month to their lowest levels to date, research firm TrendForce said in a report, expecting lithium demand to remain subdued in July, with prices falling to the “sensitive range” of 80,000-90,000 yuan/tonne ($11,000-$12,375).
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