Lake Resources NL (LKE:AU) STA Research assigns a Speculative Buy rating, $2 target

STA Research assigned Lake Resources with a 12 month target forecast of AUD $2.00 , with a Speculative Buy rating.

Based on the Lake Resources NL stock forecasts from 1 analysts, the average analyst target price for Lake Resources NL is AUD 2.56 over the next 12 months. Lake Resources NL’s average analyst rating is . Stock Target Advisor’s own stock analysis of Lake Resources NL is Slightly Bearish, which is based on 2 positive signals and 4 negative signals. At the last closing, Lake Resources NL’s stock price was AUD 0.84. Lake Resources NL’s stock price has changed by -0.68% over the past week, -0.67% over the past month and +136.62% over the last year.

Argentina is where Lake Resources NL searches for and develops lithium brine projects. Its most notable undertaking is the fully owned Kachi lithium brine project, which is spread across 39 mining licences and covers a surface area of roughly 74,000 hectares in the Catamarca province of Argentina. The business is situated in Sydney, Australia, and was founded in 1997.

 

What we like:

High market capitalization

This 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

This 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 this company 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 book value

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

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector