LAC Stock Price Forecast:
According to 6 analysts’ stock projections for Lithium Americas Corp. (LAC:TSX), the average analyst LAC stock price target over the next 12 months is CAD 50.33. The consensus analyst recommendation for Lithium Americas Corp. is a Strong Buy.
Lithium Americas Corp’s stock analysis by Stock Target Advisor is Bearish and is based on 2 positive and 7 negative indications. LAC stock price was CAD 29.51 at the most recent close.
LAC stock price has changed by -8.27% over the previous week, -12.09% over the previous month, and -20.67% over the previous year.
Lithium Americas-News:
By acquiring Arena Minerals Inc., Lithium Americas Corp. hopes to acquire further properties in Argentina, consolidating its position as the industry leader in battery metal’s fastest-growing market.
In an all-stock deal that values the Toronto-based minerals explorer at C$311 million ($227 million), Lithium Americas proposed to purchase the shares of Arena Minerals that it does not already hold. Within the past year, Lithium Americas has outbid rivals to purchase Millennial Lithium Corp., a different Canadian mineral explorer with properties in Argentina’s lithium-rich country.
An increase in the demand for electric vehicles is being fueled by a global transition away from dirty energy sources like fossil fuels. This is leading to a shortage of battery materials and a scramble to acquire international supplies like lithium. In particular, Argentina has grown to be a prominent location for metals explorers looking for lithium resources.
According to Chris Berry, president of consulting firm House Mountain Partners, the acquisition “allows Lithium Americas to continue consolidating the region and becoming a lithium monster in Argentina later this decade” and is “a really accretive deal for them given the growth prospects for lithium in Argentina.”
According to Cowen & Co. analyst David Deckelbaum, Lithium Americas’ location in South America would allow the company to generate 100,000 tonnes of lithium carbonate annually.
Lithium Americas share for every Arena share. That equals a 28% premium above the closing price on Monday. The company already owns about 20% of Arena Minerals, while a subsidiary of China’s Ganfeng Lithium Group Co. owned approximately 16%. Prior to the transaction’s closing, Ganfeng has agreed to sell its interest.
