Intel stock spikes after report of possible US government stake
Investing.com - BMO Capital raised its price target on Lithium Argentina (NYSE:LAR) to $4.00 from $2.50 on Tuesday, while maintaining a Market Perform rating on the lithium producer’s stock. The company’s shares, currently trading at $3.60, have surged over 40% year-to-date, according to InvestingPro data.
The price target increase follows Lithium Argentina’s second quarter results, which were released amid strengthening lithium prices in the market. BMO’s net present value calculation for the company rose to approximately $3.40 from $2.60. With a market capitalization of $584.5 million and a current ratio of 0.55, InvestingPro analysis reveals the company faces some liquidity challenges.
BMO attributed the higher valuation primarily to lower costs and the advancement of the Cauchari-Olaroz phase 2 project, which the firm now expects to come online in 2029, one year earlier than previously forecast.
The investment bank maintained its lithium price forecast, which anticipates benchmark prices rebounding to $15,000-$16,000 per ton by 2028-2029 from current levels of approximately $11,000 per ton.
BMO’s target price exceeds its net present value calculation, as the firm sees potential for "near-term value enhancing asset reorganization" between Ganfeng and Lithium Argentina for early-stage assets in Salta, Argentina.
In other recent news, Lithium Argentina AG has announced a significant development by entering into a joint venture with Ganfeng Lithium (HK:1772) Group. This collaboration will integrate three lithium brine projects in Salta, Argentina, with Ganfeng holding a 67% stake and Lithium Argentina holding 33%. The joint venture will consolidate Ganfeng’s Pozuelos-Pastos Grandes project with Lithium Argentina’s Pastos Grandes and Sal de la Puna projects. Additionally, Lithium Argentina AG has filed a Form 6-K with the United States Securities and Exchange Commission. This filing, for the month of May 2025, indicates the company will continue to submit annual reports under Form 20-F. The Form 6-K also includes several exhibits related to the company’s stock offering plan. These exhibits are incorporated by reference into the company’s Registration Statement on Form S-8. The document highlights the company’s North American mailing address in Vancouver, British Columbia, Canada.
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