LAC - Why Lithium Americas Corp. Dived 10% Lower on Wednesday
2023-10-18 18:55:00 ET
Lithium Americas Corp. (NYSE: LAC) , which focuses its efforts on mining a key element used in moden batteries, didn't produce much of a charge on Hump Day. The company's share price fell by over 10% following an analyst's recommendation change. That rate compared most unfavorably to the 1.3% dip of the S&P 500 index on the day.
The analyst in question was Corinne Blanchard of veteran financial services company Deutsche Bank (NYSE: DB) . She downgraded her recommendation on Lithium Americas stock to hold; previously, she pegged it as a buy. In doing so, she drastically lowered the price target on the shares -- it's now $7 apiece, well down from the previous $25.
In her research note detailing the change, Blanchard zeroed in on the company's Thacker Pass project. This is a lithium mine located in Nevada and operated by Lithium Americas. While stating that the mine has good potential for the company, she said that execution risk for the project is "elevated," as it is currently in an early stage of development.
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Why Lithium Americas Corp. Dived 10% Lower on Wednesday