Scotiabank Has Lowered Expectations for Lithium Americas (NYSE:LAC) Stock Price

Key Points

• Scotiabank cut its price target for Lithium Americas from $7.00 to $5.00 and kept a sector perform rating, implying roughly a 23.9% upside from the stock's previous close.
• Analyst coverage is mixed—three Buy, eight Hold and one Sell—resulting in a consensus Hold rating and an average target price of $5.56.
• Shares traded at $4.04 after an earnings miss (Q: -$0.37 vs. est. -$0.04); the company has a market cap of about $1.4B and a negative P/E, reflecting ongoing losses.

Lithium Americas (NYSE:LAC - Get Free Report) had its price objective cut by analysts at Scotiabank from $7.00 to $5.00 in a note issued to investors on Monday,Benzinga reports. The firm presently has a "sector perform" rating on the stock. Scotiabank's price objective points to a potential upside of 23.92% from the company's previous close.

Other equities research analysts have also issued research reports about the company. TD Securities upgraded Lithium Americas to a "hold" rating in a research report on Monday, February 9th. Weiss Ratings restated a "sell (d-)" rating on shares of Lithium Americas in a research note on Wednesday, January 28th. Finally, Jefferies Financial Group reaffirmed a "buy" rating on shares of Lithium Americas in a report on Monday, February 23rd. Three research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $5.56.

Lithium Americas Stock Performance

Shares of NYSE:LAC traded down $0.01 on Monday, hitting $4.04. 1,685,827 shares of the company were exchanged, compared to its average volume of 12,273,720. The company has a current ratio of 5.16, a quick ratio of 5.16 and a debt-to-equity ratio of 0.50. The stock's 50 day moving average price is $4.62 and its 200 day moving average price is $5.28. Lithium Americas has a 1-year low of $2.31 and a 1-year high of $10.52. The firm has a market capitalization of $1.40 billion, a P/E ratio of -8.79 and a beta of 1.81.

Lithium Americas (NYSE:LAC - Get Free Report) last issued its earnings results on Thursday, March 19th. The company reported ($0.37) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.33). Sell-side analysts predict that Lithium Americas will post -0.12 EPS for the current year.

Institutional Trading of Lithium Americas

Hedge funds have recently added to or reduced their stakes in the company. Steward Partners Investment Advisory LLC increased its holdings in Lithium Americas by 149.2% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 5,930 shares of the company's stock valued at $26,000 after buying an additional 3,550 shares in the last quarter. IFP Advisors Inc grew its position in shares of Lithium Americas by 1,253.3% during the 4th quarter. IFP Advisors Inc now owns 6,496 shares of the company's stock valued at $28,000 after acquiring an additional 6,016 shares during the period. Quarry LP purchased a new position in shares of Lithium Americas in the 3rd quarter valued at about $28,000. Walleye Capital LLC acquired a new position in Lithium Americas in the 2nd quarter worth about $28,000. Finally, IHT Wealth Management LLC purchased a new position in Lithium Americas during the second quarter worth approximately $28,000.

About Lithium Americas

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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