Strategic Partnership and Funding Bolster Lithium Americas Corp.’s Market Position, Justifying Buy Rating

Evercore ISI analyst Stephen Richardson has maintained their bullish stance on LAC stock, giving a Buy rating on April 2.

Stephen Richardson has given his Buy rating due to a combination of factors that highlight the unique position of Lithium Americas Corp. (LAC) in the lithium market. The company’s core asset, Thacker Pass, is fully funded and benefits from a strong partnership with General Motors, which is committed to the project’s development and offtake agreements. This partnership provides LAC with a strategic advantage, as it is less affected by short-term fluctuations in lithium prices and is well-positioned for future demand.
Furthermore, significant progress has been made in the development of Thacker Pass, including securing a substantial loan from the Department of Energy’s Loan Program Office, which covers a large portion of the project’s costs. The joint venture structure with GM ensures alignment and commitment to funding, enhancing the project’s prospects. With these elements in place, Richardson sees LAC as having a valuable, large-scale lithium resource that is integral to the EV supply chain, justifying the Buy rating and a target price of $4.50 per share.

In another report released on April 2, National Bank also maintained a Buy rating on the stock with a C$6.50 price target.