Shares of Albemarle (ALB) were crushed.

Intraday, the lithium stock broke below $300.  All thanks to Goldman Sachs, which believes that lithium supply and demand will balance out quicker than expected.  Goldman made a similar call earlier in the year, only to be proven wrong then, as well.

This time around, Goldman Sachs says lithium production could be well above demand by at least 400,000 tons.  Unfortunately for the firm, they’re wrong again – especially with Trafigura saying lithium “demand will hit 800,000 tons of lithium carbonate equivalent this year — overshooting supply by 140,000 tons — and sees demand rising by a further 200,000 to 250,000 tons annually through 2025.”

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In short, as investors realize just how wrong Goldman Sachs is – again – lithium stocks, like Albemarle could quickly come racing back.

Better, over the last few days, RBC Capital raised its price target on ALB to $380 from $371, with an outperform rating.  Deutsche Bank raised its price target to $325 from $305, with a buy rating.  All because “lithium continues to shine.”


Ian Cooper