Lithium Americas (TSE:LAC) Trading Up 5.8% – Still a Buy?

Lithium Americas Corp. (TSE:LAC) was up 5.8% during mid-day trading on Tuesday . The company traded as high as C$7.65 and last traded at C$7.62. Approximately 1,471,365 shares traded hands during mid-day trading, a decline of 8% from the average daily volume of 1,606,679 shares. The stock had previously closed at C$7.20.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the stock. National Bank Financial dropped their target price on shares of Lithium Americas from C$7.50 to C$7.25 and set a “sector perform” rating for the company in a research report on Friday, May 15th. TD Securities raised shares of Lithium Americas to a “hold” rating in a research note on Monday, February 9th. Scotia lifted their price target on Lithium Americas from C$8.50 to C$11.00 and gave the company a “sector outperform” rating in a research note on Friday, May 15th. Finally, Wedbush raised Lithium Americas to a “hold” rating in a report on Monday, April 20th. Two investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of C$8.25.

Lithium Americas Stock Performance

The company has a debt-to-equity ratio of 65.10, a quick ratio of 52.06 and a current ratio of 7.36. The company’s 50 day moving average price is C$6.51 and its 200-day moving average price is C$6.77. The stock has a market cap of C$2.68 billion, a P/E ratio of -16.93 and a beta of 1.26.

About Lithium Americas

Lithium Americas is developing three lithium production assets, two brine resources located in northwestern Argentina and a clay resource in Nevada, U.S. While the company has no current lithium production, we expect the first Argentina resource, Cauchari-Olaroz, to enter production in late 2022. We expect the Nevada project, Thacker Pass, to enter production in the middle of the 2020s and the second brine resource, Pastos Grandes, to enter production in the late-2020s. Lithium Americas plans for all three resources to be fully integrated, selling into the lithium chemical market.