TD Cowen analyst David Deckelbaum maintained a Buy rating on Lithium Royalty Corp. (LIRC – Research Report) yesterday and set a price target of C$8.50.
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David Deckelbaum has given his Buy rating due to a combination of factors including the promising outlook for Lithium Royalty Corp.’s future revenue streams. Despite current challenges such as low lithium prices and negative adjusted EBITDA, the company has reported a significant increase in royalty revenue, up 177% quarter-over-quarter, largely due to the timing of shipments.
Looking ahead, several projects are poised to enhance LIRC’s financial performance. Notably, the Grota do Cirilo project is advancing towards Phase 2 completion, expected to significantly boost royalty income. Additionally, the Mariana and Das Neves projects are progressing well, with both expected to contribute substantial royalty income once fully operational. These developments suggest a strong potential for revenue growth, underpinning Deckelbaum’s optimistic Buy rating.