Jim Cramer Critiques Lithium Americas Corp Amid Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 14 2024
0mins
Should l Buy LAC?
Source: SeekingAlpha
Lithium Americas Corp. (LAC) saw a significant decline of 7.74% as it crossed below its 5-day SMA, reflecting broader market weakness with the Nasdaq-100 down 1.50% and the S&P 500 down 0.40%.
Jim Cramer expressed a negative view on LAC, labeling it too speculative compared to safer investments like Albemarle (ALB). He highlighted the risks associated with LAC's market position in lithium mining, urging caution among investors in the current economic climate. Cramer’s preference for ALB underscores the challenges LAC faces in attracting investment amid rising concerns about market volatility.
The implications of Cramer's critique could further dampen investor sentiment towards LAC, especially as the market continues to show weakness. Investors may reconsider their positions in LAC, favoring more stable alternatives in the lithium sector.
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Analyst Views on LAC
Wall Street analysts forecast LAC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LAC is 5.77 USD with a low forecast of 4.73 USD and a high forecast of 8.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
1 Buy
6 Hold
1 Sell
Hold
Current: 4.410
Low
4.73
Averages
5.77
High
8.00
Current: 4.410
Low
4.73
Averages
5.77
High
8.00
About LAC
Lithium Americas Corp. is a Canada-based lithium company. The Company focused on developing, building, and operating lithium deposits and chemical processing facilities. The Company’s flagship asset is Thacker Pass, a sedimentary-based lithium deposit located in the McDermitt Caldera in Humboldt County, in northern Nevada. The Company is focused on developing the 100%-owned Thacker Pass lithium project in northern Nevada, the United States of America. Thacker Pass is approximately 100 kilometers (km) north-northwest of Winnemucca, Nevada, approximately 33 km west-northwest of Orovada, Nevada, and 33 km due south of the Oregon border. The Thacker Pass area encompasses approximately 7,900 hectares (ha) and lies within and is surrounded by public lands. The Company's subsidiaries are LAC Management LLC, Lithium Nevada Ventures LLC, KV Project LLC and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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