BMO Capital Markets Has Lowered Expectations for Lithium Americas (NYSE:LAC) Stock Price

Key Points

• BMO Capital Markets cut Lithium Americas’ price target from $4.50 to $4.00 while maintaining a “market perform” rating, implying 17.13% upside from the prior close.
• Analyst sentiment remains cautious: the stock has an average “Hold” rating and a consensus price target of $5.33, with two Buy ratings, nine Holds, and one Sell.
• Lithium Americas opened at $3.42, has fallen from a 52-week high of $10.52, and reported a quarterly loss of $0.02 per share—better than the expected $0.04 loss.

Lithium Americas (NYSE:LAC - Get Free Report) had its target price decreased by BMO Capital Markets from $4.50 to $4.00 in a report released on Friday,Benzinga reports. The firm presently has a "market perform" rating on the stock. BMO Capital Markets' price target would suggest a potential upside of 17.13% from the company's previous close.

Other research analysts have also issued reports about the stock. Wedbush began coverage on shares of Lithium Americas in a report on Monday, April 20th. They issued a "neutral" rating and a $8.00 price objective for the company. Scotia reduced their price target on shares of Lithium Americas from $5.00 to $4.50 and set a "sector perform" rating on the stock in a research report on Monday, May 25th. The Goldman Sachs Group started coverage on shares of Lithium Americas in a research note on Wednesday, July 1st. They issued a "neutral" rating and a $4.50 price target for the company. Wall Street Zen lowered shares of Lithium Americas from a "sell" rating to a "strong sell" rating in a report on Saturday, August 1st. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Lithium Americas in a research report on Friday, July 24th. Two equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $5.33.

Lithium Americas Price Performance

LAC opened at $3.42 on Friday. The company has a debt-to-equity ratio of 0.65, a quick ratio of 7.36 and a current ratio of 7.36. The stock has a market capitalization of $1.20 billion, a PE ratio of -8.33 and a beta of 2.57. The stock's 50 day moving average price is $3.57 and its 200-day moving average price is $4.35. Lithium Americas has a 52-week low of $2.66 and a 52-week high of $10.52.

Lithium Americas (NYSE:LAC - Get Free Report) last announced its quarterly earnings results on Thursday, August 13th. The company reported ($0.02) EPS for the quarter, topping analysts' consensus estimates of ($0.04) by $0.02. On average, equities research analysts predict that Lithium Americas will post -0.14 EPS for the current year.

Hedge Funds Weigh In On Lithium Americas

Institutional investors and hedge funds have recently made changes to their positions in the business. Goldman Sachs Group Inc. boosted its position in shares of Lithium Americas by 44.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,046,556 shares of the company's stock worth $2,836,000 after purchasing an additional 324,518 shares in the last quarter. Creative Planning raised its stake in Lithium Americas by 18.4% during the second quarter. Creative Planning now owns 48,936 shares of the company's stock valued at $131,000 after buying an additional 7,610 shares during the last quarter. Invesco Ltd. raised its stake in Lithium Americas by 38.0% during the second quarter. Invesco Ltd. now owns 1,666,561 shares of the company's stock valued at $4,466,000 after buying an additional 459,252 shares during the last quarter. Walleye Capital LLC bought a new stake in Lithium Americas in the second quarter worth $28,000. Finally, Marshall Wace LLP bought a new stake in Lithium Americas in the second quarter worth $105,000.

Lithium Americas Company Profile

Lithium Americas Corp. is a Vancouver‐based resource company focused on the development of lithium projects to support the global transition to electric vehicles and renewable energy storage. The company specializes in advancing lithium brine and claystone assets through feasibility studies, environmental permitting and engineering design. Its technical teams work to produce high‐purity lithium chemicals, including lithium carbonate and lithium hydroxide, for battery manufacturers worldwide.

Lithium Americas' two flagship projects are the Cauchari‐Olaroz lithium brine operation in Jujuy Province, Argentina—developed in partnership with Ganfeng Lithium—and the Thacker Pass lithium clay deposit in northern Nevada, United States.

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