Lithium Americas Corp. (LAC) PT Raised to $5 at BMO Capital

BMO Capital analyst Joel Jackson raised the price target on Lithium Americas Corp. (NYSE: LAC) to $5.00 (from $3.50) while maintaining a Market Perform rating.

The analyst comments "Raising target price to US$5.00 but maintaining our Market Perform rating post confirmation the DOE is receiving essentially free stakes in Thacker Pass and LAC in return for loan repayment deferrals, which lowers our 10% NAV to ~US$3.40/sh. Highquality, under-construction, funded developers in scarce commodities might trade as high as ~1.0-1.5x NAV - our increased target employs the high-end of this P/NAV range considering increased media profile. However, our NAV has risks: potential capex inflation, processing/opex risk, assuming $16k/t LCE/lithium ASP in 2028E (rising with inflation thereafter) vs. spot ~$10k/t."

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