American Lithium initiated with an Outperform at National Bank

National Bank analyst Mohamed Sidibe initiated coverage of American Lithium with an Outperform rating and C$1.50 price target as part of a broader research note on Lithium names. Following a more than 80% drop in prices of lithium compounds in 2023, the firm remains cautious on the space in the near term despite the slight recovery seen in early 2024, the analyst tells investors in a research note. Demand from EVs to continue to grow, but the supply response is likely to be quick enough to dampen any risk of material deficit existing in the market in the near term, the firm states. National Bank adds however that the firm continues to expect stronger demand for lithium in the second half of the decade, which will in turn require the addition of supply from greenfield projects currently in permitting, feasibility, or in development state.