Sigma Lithium price target raised to $29 from $27 at BofA

BofA raised the firm’s price target on Sigma Lithium to $29 from $27 and keeps a Buy rating on the shares. The firm updated its model and is now expecting Q4 EBITDA of $15M, down from $42M previously, reflecting a material revenue adjustment headwind occurring when Sigma’s late September 22.5kt lithium shipment settled in Q4 likely at a much lower price than initially expected. The firm’s 2024 EBITDA forecast also decreases to $0M from $5M off of lower Q1 pricing expectations. However, from a valuation perspective, these decreases in near-term earnings are offset by Sigma’s resource expansion as well as recent closing of $90M in trade finance credit lines increasing the firm’s confidence that Phase 2 and 3 will be able to start producing in 2025, the analyst tells investors.