Piedmont Lithium initiated with Outperform, $140 target at Macquarie

Macquarie analyst Hayden Bairstow initiated coverage of Piedmont Lithium with an Outperform rating and $140 price target. Piedmont is set to join the ranks of spodumene producers in 2023 through its 25% interest in Sayona Quebec, the analyst tells investors in a research note. The firm says the company’s spodumene offtake agreement with Sayona should generate strong cash flow, enabling it to fund its diversified growth outlook. Piedmont will generate close to $1B in cash flow over the next four years through the offtake agreement, which leaves the company well positioned to fund its multi-asset growth plans, including building 60ktpa of lithium hydroxide capacity in the U.S., contends Macquarie.