Specialty chemicals company Albemarle Corporation (ALB) has provided guidance for full-year 2022 and long-term financial targets for 2026, which it expects to achieve with its focused operating model, the Albemarle Way of Excellence.
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For full-year 2022, the company expects adjusted EBITDA to be up 25% to 35% year-over-year. Elevated pricing and volumes levels for Lithium, along with anticipated stronger performance for Catalysts following previous pandemic-related weakness, is expected to support the growth.
For 2026, Albemarle expects to report a compound annual growth rate (CAGR) of 13% to 17% in net sales. Adjusted EBITDA margin is anticipated to be between 35% and 40%. (See Albemarle stock charts on TipRanks)
The CEO of Albemarl, Kent Masters, said, “We see exciting growth opportunities ahead for Albemarle, primarily driven by the importance of electrification in the transition to more sustainable sources of energy.”
On September 9, Jefferies analyst Jonathan Petersen maintained a Buy rating on the stock and raised the price target to $280. The new price target implies 16.1% upside potential from current level.
Petersen said, “The shift in decarbonization rhetoric over the past year will likely lead Albemarle to pull forward the cadence of refinery investment in COTC platforms, which should lead to a modest uptick in FCC demand prospects.”
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 8 Buys, 3 Holds and 2 Sells. The average Albemarle price target of $239.2 implies downside potential of 0.8%.
TipRanks data shows that financial blogger opinions are 91% Bullish on ALB, compared to the sector average of 70%.
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