Albemarle Positioned for Growth Despite Near-Term Lithium Headwinds
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Albemarle Corporation is a leading specialty chemicals company focused on lithium and the electric vehicle market. Despite recent share price declines, long-term demand outlook is strong.
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Q2 2023 results were mixed with lower lithium prices but EPS beat expectations. Q3 guidance implies continued revenue growth.
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Electric vehicle sales reached 10.2 million units in 2022, up 57% year-over-year. Demand projected to grow rapidly through 2030.
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Albemarle has conservative balance sheet with low debt levels compared to peers. Dividend increased for 29 straight years.
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Initiate coverage with Outperform rating based on long-term lithium demand outlook, despite near-term headwinds.