TD Cowen analyst David Deckelbaum maintained a Buy rating on Lithium Americas Corp. (LAC – Research Report) today and set a price target of $5.00.
David Deckelbaum has given his Buy rating due to a combination of factors including strategic financial maneuvers and promising project developments. The delay in closing Orion’s $250 million investment is aligned with the Final Investment Decision (FID), ensuring that the timelines for construction milestones and the first draw on the $2.26 billion DOE Loan remain intact for the third quarter of 2025. Despite a slower pace in capital expenditure, the company is on track with its construction updates, focusing on detailed engineering, which is expected to be over 90% complete by the end of 2025.
Additionally, Lithium Americas Corp. has reported significant growth in its reserves, with an updated reserve report showing a substantial increase in measured and indicated resources. The strategic investment from Orion Resource Partners, along with an anticipated $100 million infusion from General Motors following the FID, positions the company in a strong financial standing. The combination of these factors, including the progress in manufacturing awards and the upcoming installation of steel structures, supports the Buy rating as the company is well-poised for future growth and expansion.