Lithium Americas (TSE:LAC) Shares Down 21.6% - What's Next?

Key Points

• Lithium Americas Corp's shares fell by 21.6% during trading, closing at C$10.39 after reaching a low of C$10.29.
• Several analysts have downgraded the company's stock rating, with Canaccord Genuity setting a price target of C$6.25 while others maintain a Hold rating.
• The company is developing three lithium production assets, with expected production from the Argentina resource Cauchari-Olaroz starting in late 2022.

Lithium Americas Corp. (TSE:LAC - Get Free Report)'s share price traded down 21.6% during mid-day trading on Friday . The stock traded as low as C$10.29 and last traded at C$10.39. 4,766,525 shares traded hands during trading, an increase of 375% from the average session volume of 1,002,767 shares. The stock had previously closed at C$13.26.

Analyst Upgrades and Downgrades

LAC has been the subject of a number of recent research reports. TD Cowen lowered shares of Lithium Americas from a "strong-buy" rating to a "hold" rating in a report on Thursday, September 25th. Canaccord Genuity Group lowered shares of Lithium Americas from a "moderate buy" rating to a "sell" rating and set a C$6.25 price objective for the company. in a report on Thursday, October 2nd. Cormark lowered shares of Lithium Americas from a "moderate buy" rating to a "hold" rating in a report on Thursday, October 2nd. Scotiabank lowered shares of Lithium Americas from a "hold" rating to a "strong sell" rating in a report on Monday, October 6th. Finally, National Bankshares boosted their price objective on shares of Lithium Americas from C$5.00 to C$10.00 and gave the stock a "sector perform" rating in a report on Thursday, October 2nd. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of C$8.13.

Lithium Americas Trading Down 21.6%

The company has a debt-to-equity ratio of 0.65, a quick ratio of 52.06 and a current ratio of 13.88. The stock's 50-day simple moving average is C$6.29 and its 200-day simple moving average is C$4.68. The firm has a market capitalization of C$2.57 billion, a PE ratio of -41.56 and a beta of 1.26.

About Lithium Americas

Lithium Americas is developing three lithium production assets, two brine resources located in northwestern Argentina and a clay resource in Nevada, U.S. While the company has no current lithium production, we expect the first Argentina resource, Cauchari-Olaroz, to enter production in late 2022. We expect the Nevada project, Thacker Pass, to enter production in the middle of the 2020s and the second brine resource, Pastos Grandes, to enter production in the late-2020s.

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