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Investing.com - Jefferies downgraded IGO Limited (ASX:IGO) (OTC:IPGDF) from Hold to Underperform and set a price target of AUD4.20.
The downgrade comes as IGO’s Kwinana facility continues to face operational challenges with no clear resolution in sight, according to Jefferies.
The research firm highlighted that production from Greenbushes CGP3 has become critical to IGO’s investment thesis, especially as the company’s Nova operation enters what Jefferies described as a "volatile twilight year."
While IGO is taking steps to right-size its business, Jefferies expressed concern about volatile cash flow from TLEA (The Lithium Exploration Alliance), which remains a key issue for the company.
Jefferies acknowledged that the lithium market is showing signs of improvement, but these positive industry indicators were not enough to prevent the downgrade from Hold to Underperform.
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