Analyst Raj Ray of BMO Capital maintained a Buy rating on Standard Lithium Ltd, boosting the price target to $5.25.
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Raj Ray’s rating is based on several compelling factors. Firstly, the recent Definitive Feasibility Study (DFS) for Standard Lithium Ltd’s SWA Phase 1 project showed capital costs aligning with prior estimates while presenting lower operating costs, which is a positive indicator for the project’s financial viability. Despite a shorter operating life in the DFS compared to previous models, Ray maintains a longer project operating life assumption, which enhances the base-case Net Asset Value (NAV) and supports a higher target price.
Additionally, the company’s phased development strategy, backed by extensive demonstration testing, reduces risks associated with project execution. The partnership with Equinor in developing premium U.S. lithium brine further strengthens the project’s prospects. Moreover, the potential for long-term growth from the company’s East Texas properties, which have shown promising results, adds to the positive outlook. These factors collectively underpin Raj Ray’s Buy rating for Standard Lithium Ltd.
Ray covers the Basic Materials sector, focusing on stocks such as Harmony Gold Mining, Standard Lithium Ltd, and Gold Fields. According to TipRanks, Ray has an average return of 30.6% and a 71.14% success rate on recommended stocks.
In another report released on September 5, Roth MKM also reiterated a Buy rating on the stock with a $4.50 price target.