JPMorgan downgraded Lithium Americas (LAC) to Underweight from Neutral with a $5 price target, which implies 47% downside. The firm cites the stock’s over 200% rally following the U.S. government’s stake for the downgrade. The government’s stake is not “incrementally positive enough to warrant the scale of re-rating the stock has seen,” the analyst tells investors in a research note. JPMorgan sees the government’s position in Lithium Americas as a reflection of its own downside protection, rather than a truly strategic investment like it took in MP Materials (MP).
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