Deutsche Bank downgrades ‘richly valued’ Lithium Americas to Hold

Deutsche Bank downgraded Lithium Americas to Hold from Buy with a price target of $7, down from $25. The analyst views the shares as “richly valued” following the spinoff. The Thacker Pass project is a pure U.S. play lithium asset located in Nevada, supported by General Motors and the Department of Energy, the analyst tells investors in a research note. The firm, however, believes the execution risk linked to an early stage asset development is elevated. It has a more moderate /timeline for the asset versus management expectations. Deutsche says Lithium is “richly valued at the moment on a risk/reward basis.”