Albemarle Corporation Faces Market Headwinds Despite Strong Cash Flow
With a market cap of $7.2 billion, Albemarle Corporation (ALB) is a global leader in specialty chemicals. The company operates in three primary segments: Energy Storage, Specialties, and Ketjen, providing advanced chemical solutions for various industries such as energy, automotive, electronics, and pharmaceuticals.
Looking back over the past 52 weeks, shares of the Charlotte, North Carolina-based company have notably underperformed the broader market. As of now, ALB has declined 52.5%, while the S&P 500 Index ($SPX) has gained 11.9%. Additionally, Albemarle shares have dipped 28.5% year-to-date, contrasting with a slight decline in the SPX.
Furthermore, the specialty chemicals firm has lagged behind the Materials Select Sector SPDR Fund’s (XLB) 5.8% decrease over the same period.
On April 30, shares of Albemarle rose 1.3% following its Q1 2025 results. The company reported an adjusted loss of $0.18 per share, which was narrower than analysts’ consensus estimates. Although revenues fell by 21% year-over-year to $1.1 billion, investors were encouraged by strong operating cash flow of $545 million, a significant increase, and a 27% sequential rise in cash reserves. The company also achieved approximately 90% progress towards its $350 million cost and productivity improvement goal.
Looking ahead, analysts anticipate that ALB’s adjusted loss per share will increase 38.9% year-over-year to $1.43 for the current fiscal year, ending in December 2025. The company’s earnings history is mixed, having beaten consensus estimates in one of the last four quarters but missed in three others.
According to a consensus of 25 analysts covering the stock, the rating is a “Moderate Buy,” based on eight “Strong Buy” ratings, one “Moderate Buy,” 14 “Holds,” and two “Strong Sells.”
This assessment is slightly less positive than three months ago, having previously included nine “Strong Buy” ratings on the stock. On May 7, Scotiabank maintained a “Sector Perform” rating on Albemarle while lowering its price target to $65. The adjustment reflects concerns over risks linked to balance sheet leverage, potential capital raises, and ongoing weak pricing.
Currently, ALB trades below the average price target of $83.20. The highest target from analysts is set at $145, indicating a potential upside of 135.5% from present levels.
On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any securities mentioned in this article. All information and data provided are solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.
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