Analyst Laurence Alexander of Jefferies maintained a Buy rating on Lithium Americas Corp., reducing the price target to $7.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Laurence Alexander has given his Buy rating due to a combination of factors surrounding Lithium Americas Corp. The ongoing discussions with the Department of Energy (DOE) and General Motors (GM) regarding the $2.3 billion loan and potential equity stake indicate a strategic alignment that could benefit Lithium Americas. The government is reviewing the financing, and the company has offered warrants to adjust the loan amortization schedule, which suggests proactive management of financial obligations.
Additionally, the commitments from GM, which include an off-take agreement for a significant portion of production, highlight a strong demand for the company’s output. Despite the DOE’s desire for a more binding agreement, the current arrangements demonstrate a solid partnership. Furthermore, the project at Thacker Pass is progressing as planned, with a substantial portion of engineering completed and construction milestones being met, reinforcing confidence in the company’s operational capabilities.
According to TipRanks, Alexander is an analyst with an average return of -1.6% and a 45.95% success rate. Alexander covers the Basic Materials sector, focusing on stocks such as MP Materials, Nutrien, and Celanese.
In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a C$6.50 price target.