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

Key Points

• Lithium Americas shares fell by 21.6%, trading as low as C$10.29 on Thursday, with trading volume increasing to approximately 4.77 million shares.
• Analysts provided mixed ratings for Lithium Americas, with Scotiabank downgrading the stock to a "strong sell" and a consensus price target of C$8.13.
• The company is working on three lithium production projects, with the Cauchari-Olaroz project in Argentina expected to begin production in late 2022.

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

Analysts Set New Price Targets

Several analysts recently weighed in on LAC shares. Scotiabank cut shares of Lithium Americas from a "hold" rating to a "strong sell" rating in a report on Monday, October 6th. National Bankshares increased their price target on shares of Lithium Americas from C$5.00 to C$10.00 and gave the company a "sector perform" rating in a research note on Thursday, October 2nd. TD Cowen lowered shares of Lithium Americas from a "strong-buy" rating to a "hold" rating in a research note 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 target price on the stock. in a research report on Thursday, October 2nd. Finally, Cormark lowered shares of Lithium Americas from a "moderate buy" rating to a "hold" rating in a research 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 assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of C$8.13.

Lithium Americas Stock Down 21.6%

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

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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