BofA Securities Upgrades Sigma Lithium Corp. (SGML) to Buy
BofA Securities analyst Rock Hoffman upgraded Sigma Lithium Corp. (NASDAQ: SGML) from Neutral to Buy with a price target of $17.00 (from $14.00).
The analyst comments "We upgrade SGML to Buy from Neutral as we are more confident the company can navigate its near-term liquidity crunch to return to normal operations and scale. Alongside reporting 4Q earnings, SGML announced a signed $50mn prepayment, expected to be disbursed in 2Q, supplying 40ktpa SC for three years. This provides nearterm liquidity and allows SGML to accelerate Phase 2 capex alongside the Phase 1 ramp, following initial SC sales in 1Q. Further, upfront liquidity for long-term deliveries signals counterparty confidence in SGML’s ability to mine with new subcontractors, likely after significant technical and operational diligence. This may open the door to additional prepayments. We now expect P2 online in mid-27 vs 1Q28, increasing valuation."
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Shares of Sigma Lithium Corp. closed at $11.83 yesterday.