Albemarle price target lowered to $122 from $127 at KeyBanc

KeyBanc lowered the firm’s price target on Albemarle (ALB) to $122 from $127 and keeps an Overweight rating on the shares. The firm views Albemarle’s Q4 as another positive update in the face of a challenging market backdrop. Management is aggressively managing cash in 2025 with a further $100M reduction of capex from prior expectations, which could place free cash flow at breakeven. KeyBanc estimates the total cash flow benefit in 2026 of the completion of CGP3 expansion would more than offset the absence of the $350M contract prepayment in 2025.