BofA downgrades Sigma Lithium to Underperform on operational, liquidity issues

As previously reported, BofA downgraded Sigma Lithium (SGML) to Underperform from Neutral with a price target of $13, up from $11, citing unresolved operational and liquidity issues. While shares have rallied 158% since November 14 on improving lithium fundamentals, the firm sees more potential downside than upside as shares are now baking in considerable volumes from successful mining despite minimal progress in addressing outstanding issues and management having yet to provide clarity on the resumption of mining or receipt of cash from prepayments, the analyst tells investors.