Deutsche upgrades Livent to Buy, sees over 35% upside

Deutsche Bank analyst Corinne Blanchard upgraded Livent to Buy from Hold with a price target of $21, down from $27, implying over 35% upside from current levels. The stock is down 32% since early June, which represents an attractive entry point for investors at this time, the analyst tells investors in a research note. The firm believes its assumptions into 2024 are conservative after trimming lithium pricing forecasts based on current industry conditions. Deutsche views the proposed merger with Allkem “very positively,” saying it will allow Livent to access a large base of carbonate via Allkem’s Argentina existing operations to then be incorporated into its hydroxide converting facilities. It believes further value to shareholders would be unlocked once the merger is approved.