Lithium Americas Corp. (LAC) is back on Wall Street’s radar after JPMorgan turned bullish on the lithium developer, upgrading the stock to an “Overweight” rating from “Neutral” and setting a $6 price target. The target implies close to 100% upside from the stock’s previous close, giving investors a potentially significant re-rating opportunity if the bank’s bullish assumptions play out.
The call reflects a more constructive outlook for lithium prices. JPMorgan recently raised its lithium price assumptions, arguing that lithium carbonate prices have remained above $20 per kilogram and that the market could face a supply deficit through the end of the decade. Those higher price assumptions materially improve JPMorgan’s estimates for Lithium Americas’ long-term earnings and net asset value.
