Evercore ISI has renewed its coverage on Lithium Americas (LAC, Financial), bestowing an Outperform rating along with a revised price target of $4.50, a decrease from the previous $9. This change comes amidst a challenging period for lithium producers, both established and emerging, as the market grapples with an oversupply and fluctuating demands. Concerns over a potential lithium downturn in 2023 and 2024 have been overshadowed by uncertainties in demand, driven by slowing electric vehicle (EV) sales in western markets due to economic pressures and policy unpredictabilities.
Although current market conditions suggest limited immediate growth prospects, Evercore sees potential over the long term. Investors with a vision extending to the decade's end might recognize the strategic value of Lithium Americas' substantial lithium resources. Located within the continental United States, these resources are poised to become crucial to the EV supply chain, highlighting the company's future integration into this rapidly evolving sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Lithium Americas Corp (LAC, Financial) is $4.87 with a high estimate of $8.00 and a low estimate of $2.75. The average target implies an upside of 80.47% from the current price of $2.70. More detailed estimate data can be found on the Lithium Americas Corp (LAC) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Lithium Americas Corp's (LAC, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
