Keep an eye on Albemarle (ALB).
While lithium prices are still low, shares of ALB have been pushing higher. In fact, since plunging to a March low of $106.35, it’s now back up to $131.69. From here, if ALB can break above current resistance, it could rally back to $140 near term. Sure, there are still plenty of bearish analyst ratings on the stock, but with the blood flowing in the streets, it’s looking even more interesting.
Helping, analysts at Loop Capital recently raised their price target on ALB to $168 from $144 with a buy rating. They added, “The stock has bounced off its lows, owing to a commensurate move in spot lithium prices in China, and the nascent recovery in lithium prices could signal that the destocking downstream at cathode/cell/battery makers is reaching its conclusion,” as quoted by TheFly.com.