Lake Resources NL(LKE:AU) Rated a Strong Buy by Analysts and Users

Over the next year, the average price target for Lake Resources NL stock among analysts is calculated to be AUD 2.56. These projections are based on the stock forecasts provided by 0 different analysts. The average rating given by analysts to Lake Resources NL is a Speculative Buy. The stock analysis that Stock Target Advisor performed on Lake Resources NL came to the conclusion that it is Slightly Bearish. This conclusion was reached on the basis of 2 positive signals and 4 negative signals. The stock price of Lake Resources NL was AUD 0.84 as of the most recent market close. Over the past week, the price of a share of Lake Resources NL has decreased by 0.68 percent, while over the past month it has increased by 0.67 percent, and over the past year it has increased by 136.62 percent.

Lake Resources NL conducts its exploration for new lithium brine projects and development work in Argentina. Its most significant undertaking is the Kachi lithium brine project, which spans 39 mining licences and encompasses a surface area of approximately 74,000 hectares in the Catamarca province of Argentina. This undertaking is wholly owned by the company. The company was established in 1997 and has its headquarters in Sydney, which is located in Australia.

High market capitalization is something that appeals to us.

This business is one of the largest in its industry and ranks in the top quartile of companies in its category. These kinds of businesses are typically more reliable.

Superior risk adjusted returns

This stock has performed exceptionally well, on a risk-adjusted basis, in comparison to the other companies in its sector (for a hold period of at least a year), and it is in the top quartile.

High levels of volatility do not sit well with us.

Over the past five years, this company’s total returns have been highly volatile and have consistently been above the industry median. Check that you are willing to take on the level of risk that such a stock requires before investing in it.

 

When compared to its book value, the price is too high.

On the basis of price to book value, the stock is trading at a high level in comparison to the median of its peers.

Cash flow that is negative

The most recent four quarters of the company’s operations resulted in a negative total cash flow.

Slow Increase in Earnings

When compared to other companies in its industry over the past five years, this stock’s earnings growth has been significantly lower than the sector’s median.

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