Lithium Americas resumed with an Outperform at Evercore ISI

Evercore ISI resumed coverage of Lithium Americas (LAC) with an Outperform rating with a price target of $4.50, down from $9. This lithium downcycle has been vicious for established and emerging producers alike, with the oversupply driven fears of 2023/24 having been overshadowed by demand uncertainty of late as western world EV sales slow under the weight of economic forces and policy uncertainty, the analyst tells investors in a research note. While a dearth of near-term datapoints will likely see the stock trade on deferred lithium price expectations, investors willing to look forward to the end of the decade will see the value of a unique world scale lithium resource within the continental United States that will be highly integrated into the EV supply chain, Evercore added.