Arcadium Lithium price target lowered to $3.75 from $5 at Piper Sandler

Piper Sandler analyst Charles Neivert lowered the firm’s price target on Arcadium Lithium to $3.75 from $5 and keeps an Underweight rating on the shares. The firm says lithium prices continue to erode as the supply/demand environment “seems to be worsening.” The recent weakness in lithium prices comes from a confluence of factors including supply growth outstripping demand, inventories still being drawn down, and tariffs restricting Chinese electric vehicle sales, where a large majority of lithium demand remains, the analyst tells investors in a research note. As such, Piper reduced our EBITDA estimates for Albemarle (ALB) and Arcadium Lithium (ALTM) due primarily to a reduction in price decks, not volumes.