Analysts rate Lithium Americas Corp. (LAC:NYE) with a Strong Buy rating and a $40 target

STA Research
by: STA Research
LAC Stock

Based on the Lithium Americas stock forecast from 4 analysts, the average analyst LAC stock price target is USD 40.17 over the next 12 months. Lithium Americas Corp’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of LAC stock forecast is Bearish, which is based on 2 positive signals and 6 negative signals. At the last closing, Lithium Americas stock price was USD 27.18Lithium Americas stock price has changed by -3.18% over the past week, -1.49% over the past month and +23.49% over the last year.

 

About Lithium Americas Corp. (LAC:NYE):

Lithium Americas Corp. operates as a resource company in the United States and Argentina. The company explores for lithium deposits. It owns interests in the Cauchari-Olaroz project located in Jujuy province of Argentina; Thacker Pass project located in north-western Nevada; and Pastos Grandes project located in the Salta province of Argentina. The company was formerly known as Western Lithium USA Corporation and changed its name to Lithium Americas Corp. in March 2016. Lithium Americas Corp. was incorporated in 2007 and is headquartered in Vancouver, Canada.

 

 

Most Recent Analyst Rating for LAC’s stock:

Resumed Piper Sandler Overweight USD 38 2022-09-20
Target Lowered Canaccord Capital Buy » Buy USD 50 » USD 49 2022-07-22
Target Lowered by Deutsche Bank Capital USD 36 » USD 33 2022-07-06
Target Lowered by Deutsche Bank Capital USD 40 » USD 36 2022-05-06
Upgrade Morningstar Inc. Buy USD 45 2022-04-12
Target Raised by Deutsche Bank Capital USD 34 » USD 40 2022-04-05
Initiated by Stifel Nicolaus Research Buy 2022-02-24
Initiates Coverage On HSBC Buy USD 36 2022-01-27
Upgrades Cowen Outperform USD 30 » USD 40 2022-01-12
Upgrades Deutsche Bank Capital Buy USD 34 2022-01-11
Upgrades Piper Sandler Overweight USD 32 » USD 41 2022-01-11
Target Raised by B. Riley Positive » Buy USD 25 » USD 44 2021-11-24
Target Raised by Piper Sandler Neutral USD 22 » USD 32 2021-11-22
Target Raised by JP Morgan Overweight USD 28 » USD 39 2021-11-19
Target Raised by National Bank of Canada
Financial Outperform USD 32 » USD 40 2021-11-18
Target Raised by Canaccord Capital Buy USD 35 » USD 46 2021-11-18
Target Raised by TD Research Hold USD 36 » USD 45 2021-11-18
Target Up National Bank of Canada
Financial Outperform USD 50 2021-11-18
Downgraded Deutsche Bank Capital Buy » Hold USD 25 » USD 31 2021-11-16
Initiates Coverage On TD Research Hold USD 36 2021-10-28
Target Raised by Deutsche Bank Capital Buy USD 22 » USD 25 2021-10-04
Initiates Coverage On Piper Sandler Neutral USD 20 2021-10-01
Initiated by JP Morgan & Company Overweight USD 28 2021-09-30
Target Raised by Cowen Outperform USD 17 » USD 19 2021-08-30
Initiated by Industrial Alliance Securities Buy 2021-06-23

 

What we like:

High market capitalization:

LAC stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

LAC stock has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

 

 

What we don’t like:

High volatility:

The total returns for LAC stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings:

LAC stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

LAC stock price is trading high compared to its peers median on a price to book value basis.

Highly leveraged:

Lithium Americas Corp. is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow:

Lithium Americas stock had negative total cash flow in the most recent four quarters.

Negative free cash flow:

Lithium Americas stock had negative total free cash flow in the most recent four quarters.

 

 

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