UBS Downgrades Li-Cycle Holdings Corp. (LICY) to Neutral

UBS analyst Jon Windham downgraded Li-Cycle Holdings Corp. (NYSE: LICY) from Buy to Neutral with a price target of $0.75 (from $9.00).

The analyst comments "LICY is seeking “strategic alternatives” (all options on the table) to fund the construction at the Rochester hub. We revise our FY2023/24/25/26 adj. EBITDA estimates to $(140)/ (108)/33/185mn from $(139)/(60)/89/219mn, previously, to reflect the construction halt at the Rochester, NY hub and assume an estimated 6-month delay in project ramp. The change in operating estimates drives a reduction in FY2023/24/25/26E adj. EPS to $(0.88)/(1.05)/(0.68)/(0.04) from $(0.90)/(0.75)/ (0.23)/0.21, previously. We downgrade LICY shares from Buy to Neutral given the heightened uncertainty around project viability and near-term funding. LICY’s ability to secure adequate project funding and a revised project timeline are potential upside catalysts, in our view."

For an analyst ratings summary and ratings history on Li-Cycle Holdings Corp. click here. For more ratings news on Li-Cycle Holdings Corp. click here.

Shares of Li-Cycle Holdings Corp. closed at $0.71 yesterday.

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