12 Best Basic Materials Stocks to Buy According to Analysts

7) Albemarle Corporation (NYSE:ALB)

Average Upside Potential: 39.5%

Number of Hedge Fund Holders: 35

Albemarle Corporation (NYSE:ALB) is engaged in developing, manufacturing, and marketing engineered specialty chemicals. Truist initiated coverage of the company’s stock with a “Hold” rating and a price objective of $96. As per the firm, Albemarle Corporation (NYSE:ALB)’s scale and relatively low-cost production footprint place it well over the long term to capitalize on the growth opportunities in the broader lithium market. Truist Securities lauded the company’s large-scale operations and cost-efficient production. The firm expects that these strengths will help the company tap opportunities in the growing demand for lithium, which remains a key component in EV batteries.

Albemarle Corporation (NYSE:ALB)’s vertical integration and diversified asset base are expected to allow the company to ramp up production rapidly to meet increased demand for lithium, resulting in enhancing market share and realizing significant profits. Notably, the expansion of EVs will remain a critical driver of broader lithium demand. The global EV adoption is expected to increase mainly because of government incentives, and advancement in battery technology. Therefore, Albemarle Corporation (NYSE:ALB) stands to gain from higher lithium prices because of its long-term supply agreements and cost-effective operations.

Albemarle Corporation (NYSE:ALB) has announced a new operating structure to adapt to dynamic market conditions. Its operating structure is expected to pivot from 2 core global business units – Energy Storage and Specialties – to a fully integrated functional model focused on increasing agility, delivering numerous cost savings, and maintaining competitiveness.