2023-05-11 15:33:59 ET
Livent ( NYSE: LTHM ) racked up two new analyst upgrades Thursday, but the stock is little changed after jumping more than 5% a day earlier following news of the company's $10.6B merger deal with Allkem .
In raising Livent ( LTHM ) to Overweight from Sector Weight with a $30 price target, KeyBanc's Aleksey Yefremov said he expects demand for lithium in China will improve after a downturn that started in November, saying his recent checks from the lithium industry in China indicate inventories at the battery cell/EV OEM level are declining, and could bottom out in the coming months, and purchase orders from large buyers could resume shortly.
Yefremov thinks Allkem's ( OTCPK:OROCF ) assets are a solid strategic fit with Livent ( LTHM ), and the deal brings synergies at closely located resources in Argentina and Canada; he also believes the combined entity will enhance lithium industry discipline and help reduce price volatility in the long run.
B. Riley upgraded Livent ( LTHM ) to Buy from Neutral with a $32 PT, believing the merger offers several compelling advantages: greater scale, resource diversification and strong cost synergies due to asset proximity.
BofA's Matthew DeYoe maintained his Buy rating on Livent ( LTHM ) while ticking his PT up to $29 from $27, saying the deal provides the chance to rapidly scale its portfolio of offerings and locations from which it can service customers, which creates a more attractive partner for battery customers.
More on Livent:
- Financial and valuation comparisons to sector peers
- Analysis: Livent: The Best Pure Play Lithium Stock On The Market
- Stock price return: Up 34.5% YTD, up 6% in the past 12 months
For further details see:
Livent adds two analyst upgrades with merger seen as strong strategic fit