Analyst Joel Jackson of BMO Capital maintained a Hold rating on Lithium Americas Corp., retaining the price target of $5.00.
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Joel Jackson has given his Hold rating due to a combination of factors involving both opportunities and challenges faced by Lithium Americas Corp. The company’s recent balance sheet activities, including the completion of ATM proceeds and the DOE loan drawdown, have strengthened its financial position. However, the execution of the Thacker Pass project, which is crucial for the company’s future, is still in its early stages and faces potential risks such as capital expenditure inflation and tariff impacts.
Despite the progress in project development, including infrastructure readiness and equipment commitments, there are concerns about the timeline and budget adherence. The valuation and risk/reward profile of the company, considering factors like lithium price volatility and operational risks, contribute to the Hold rating. While the company is positioned to be a part of the North American EV supply chain, these uncertainties warrant a cautious approach.
Jackson covers the Basic Materials sector, focusing on stocks such as Corteva, FMC, and Methanex. According to TipRanks, Jackson has an average return of 5.5% and a 55.17% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $5.00 price target.