Analyst Joel Jackson of BMO Capital reiterated a Buy rating on Sigma Lithium (SGML – Research Report), with a price target of $18.00.
Joel Jackson’s rating is based on a combination of factors that highlight Sigma Lithium’s potential for growth and resilience in the current market. The company has shown an increase in its mineral resources and reserves, which positions it well for future production expansion. Despite a challenging market environment for spodumene and lithium, Sigma Lithium’s cost structure is robust enough to withstand potential downturns, providing a buffer against market volatility.
Additionally, the company’s operational improvements and cost management strategies have led to positive adjustments in sales volume and cost forecasts for 2025. The expectation of a slight increase in free cash flow and the potential for price rises in the latter half of the year further support the positive outlook. Moreover, the anticipated commissioning of Phase 2 by late 2025, supported by a pending bank guarantee for a significant loan, underscores the company’s growth trajectory. These elements collectively justify the Buy rating, as they indicate a promising future for Sigma Lithium.
In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a C$22.00 price target.