Bank of America upgraded Albemarle to Buy from Neutral with a $190 price target, citing stronger lithium pricing and cost improvements that should boost earnings. The brokerage noted lithium spot prices have doubled since October to over $20 per kilogram, with recent weakness creating an attractive entry point after a 14% pullback.

Albemarle's fourth-quarter results exceeded guidance, aided by stronger energy storage volumes as customer destocking eased. The company is delivering about $450 million in annualized cost savings and expects an additional $100 million to $150 million in productivity gains. Based on current pricing, Albemarle is guiding for full-year EBITDA of $2.4 billion to $2.6 billion, well above consensus near $1.7 billion.

Bank of America raised its 2026 EBITDA estimate to about $2.43 billion from $2.31 billion, driven by higher pricing assumptions and additional cost savings. It also expects margins to expand to 41% from 36%, helped by manufacturing efficiencies and supply chain improvements. The bank said supply and demand trends are tightening the market, with Chinese permitting changes keeping higher-cost lepidolite supply offline longer while battery installations increase.