Analyst Note
| Seth Goldstein, CFA |Albemarle reported solid first-quarter results, as adjusted EBITDA was up 17% year on year as higher lithium and bromine profits were partially offset by lower catalyst profits. We have updated our outlook to account for slightly higher near-term lithium results, as we expect the company will take advantage of strong demand and sell more volumes. Separately, we have increased our outlook for the bromine business to account for a capacity expansion amid strong demand for brominated flame retardants used in servers and electronics. After updating our model to reflect these changes, we increase narrow-moat Albemarle's fair value estimate to $145 per share from $140.