Analyst Note
| Seth Goldstein |We maintain our $350 per share fair value estimate for Albemarle after updating our model to reflect the company's strategic update. Our narrow moat rating is also unchanged. Our largest key takeaway from the event was Albemarle's plan to transition its lithium sold from long-term price contracts to an index-referenced pricing scheme is compete. Additionally, the event reaffirmed our view that Albemarle's plan to grow its annual lithium volumes is on track. While we updated our outlook for higher volumes and lithium prices in the energy storage segment, we also updated our assumptions for higher unit production costs and capital expenditures, which roughly offset.