Goldman Sachs raised its price target on Abemarle to $125 from $123 and reiterated its buy rating on the stock as the bank predicted that over-capacity in the lithium sector is overdone. It also, reiterated its buy rating on FMC with a price target of $114. The company said it expects demand for lithium-ion batteries will grow by about 30% over the next five years, but also noted that there are still some challenges facing the industry. Contract prices set by companies haven’t provided full protection in other industries, but with rapidly declining industry operating rates, he expects this structure to provide some protection for the lithium industry. Lithium carbonate spot prices will decline toward $6,500 per ton and contract prices to $10,500 per ton by 2023 before rising, he said.
Goldman Sachs raised its price target on Abemarle to $125 from $123 and reiterated its buy rating on the stock as the bank predicted that over-capacity in the lithium sector is overdone. It also, reiterated its buy rating on FMC with a price target of $114. The lithium industry will more than quadruple in size between 2017 and 2025, said analyst Robert Koort. Contract prices set by companies haven’t provided full protection in other industries, but with rapidly declining industry operating rates, he expects this structure to provide some protection for the lithium industry. Lithium carbonate spot prices will decline toward $6,500 per ton and contract prices to $10,500 per ton by 2023 before rising, he said.