SLI - Wall Street Favorites: 3 Lithium Stocks With Strong Buy Ratings for June 2024
2024-06-18 06:15:00 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The best lithium stocks to buy this year should benefit from China’s ambitious goals in electric vehicle (EV) production and adoption, which require vast amounts of lithium for battery manufacturing. Despite short-term economic fluctuations due to COVID-19 lockdowns and real estate issues, China’s demand for lithium is projected to surge as it aims for 60% of new vehicle sales to be electric by 2035. Moreover, China is a major market for lithium exports from leading producers like Australia and Chile. This forms the basis for my article on strong buy lithium stocks.
Investors looking for the most undervalued and strong buy lithium stocks should consider companies with robust competitive advantages, low-cost production capabilities and long-term supply agreements with major EV and renewable energy players. These firms are ready to capitalize on the accelerating shift towards electric mobility and renewable energy storage, offering significant potential returns.
Here are three of the best lithium stocks for investors to consider.
Sigma Lithium (SGML)
Sigma Lithium’s (NASDAQ: SGML ) project pipeline and significant progress in its Brazilian operations have earned it Strong Buy ratings from market analysts.
The company expects to significantly increase its production capacity. The company plans to double its production to 520,000 tonnes per year by constructing a Phase 2 industrial plant?. The expansion is crucial for meeting the rising global demand for lithium, especially as EV adoption accelerates. Additionally, Sigma Lithium is expected to increase its revenue substantially, with forecasts predicting a jump from $373.87 million in 2024 to $811.13 million in 2025?.
Market analysts are bullish on Sigma Lithium. The stock has a consensus rating of Strong Buy from multiple analysts. The average price target for SGML stock is set at $29.5, which indicates an upside potential of approximately 133.57% from the current price of around $12.63.
SGML could be one to watch this year and over the next decade or two.
Standard Lithium (SLI)
Standard Lithium (NYSEMKT: SLI ) has made significant strides with its lithium brine project in Arkansas. Analysts are optimistic about its future production and project economics, earning it Strong Buy ratings.
For 2024, Standard Lithium is focusing on advancing its flagship projects, particularly the Phase 1A Project and the South West Arkansas (SWA) Project. The company aims to achieve its first production in 2026 from the Phase 1A Project, which could yield 5,400 tonnes per annum (tpa) of battery-quality lithium carbonate over a 25-year operating life.
Additionally, the SWA Project should commence production in 2027 with an average annual production of 30,000 tpa of battery-quality lithium hydroxide monohydrate (LHM). This project has a robust after-tax net present value of $3.1 billion.
Analysts are optimistic about Standard Lithium’s future. The consensus rating is a Strong Buy, with a 12-month price target of $3.50, representing a potential upside of 159.26% from the current price of around $1.35.
Enovix (ENVX)
Enovix (NASDAQ: ENVX ) is pioneering silicon-based lithium-ion battery technology, positioning itself for substantial growth in various sectors, including EVs and wearables. This innovative edge has led to Strong Buy ratings from analysts.
Enovix is poised for a significant year in 2024, with several key developments and projections. The company expects to start production at its Fab2 manufacturing facility in Malaysia by mid-2024. The facility will support the production of advanced battery cells, including the new EX-1M batteries, which will be ready for customer sampling in the second quarter.
The company forecasts revenue between $3 million and $4 million for the second quarter of 2024, alongside an adjusted EBITDA loss ranging from $26 million to $32 million and a non-GAAP EPS loss of 22 to 28 cents.
Analysts project an average 12-month price target of $19.38, indicating a potential upside of 58.85% from the current stock price.
?On the date of publication, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
More From InvestorPlace
- The #1 AI Investment Might Be This Company You’ve Never Heard Of
- Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
- Legendary Investor Predicts: “Forget A.I. THIS Technology Is the Future”
The post Wall Street Favorites: 3 Lithium Stocks With Strong Buy Ratings for June 2024 appeared first on InvestorPlace .