Analyst Joel Jackson from BMO Capital maintained a Buy rating on Sigma Lithium and decreased the price target to $10.00 from $12.00.
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Joel Jackson has given his Buy rating due to a combination of factors influencing Sigma Lithium’s current and future prospects. Despite recent volatility and changes at the mine, Jackson sees potential in the company’s long-term operations. The transition to a new mining contractor and the introduction of new equipment are expected to stabilize production, albeit with some short-term uncertainties.
Jackson’s confidence is bolstered by the anticipated rebound in spodumene prices, which could enhance Sigma Lithium’s financial performance. While the near-term production and sales volumes are adjusted downward, the overall asset quality and the strategic expansion plans position the company for future growth. The risk, according to Jackson, is skewed positively, suggesting that the current challenges may lead to greater opportunities for Sigma Lithium.
According to TipRanks, Jackson is a 4-star analyst with an average return of 5.5% and a 55.17% success rate. Jackson covers the Basic Materials sector, focusing on stocks such as Corteva, FMC, and Sigma Lithium.