Arcadium Lithium initiated with a Neutral at JPMorgan

JPMorgan analyst Jeffrey Zekauskas initiated coverage of Arcadium Lithium with a Neutral rating and $5 price target. The analyst thinks the current market value of Arcadium Lithium is a function of the market assuming a longer-term lithium carbonate equivalent price near $20k/t, which is a “reasonable assessment.” Arcadium is likely to experience a “sharp” pro forma decrease in EBITDA in 2024 because of the effects of sharply decreasing lithium prices, the analyst tells investors in a research note. As such, the firm sees room for Arcadium’s share price to move lower in the short term.