Jim Cramer Warns Against Investing in Lithium Americas Corp.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 03 2025
0mins
Should l Buy LAC?
Source: Benzinga
Lithium Americas Corp. (LAC) saw a significant decline of 7.25% as it crossed below its 5-day SMA, reflecting negative sentiment in the market. Jim Cramer expressed a bearish outlook on LAC, labeling it too speculative compared to safer alternatives like Albemarle (ALB). He highlighted the inherent risks associated with LAC's position in the lithium market, advising investors to exercise caution amid current economic uncertainties.
Cramer's comments underscore the challenges facing Lithium Americas Corp., particularly in a volatile market where speculative investments are under scrutiny. His preference for Albemarle, which he views as a more stable investment, further emphasizes the concerns surrounding LAC's speculative nature. Investors are advised to consider these factors when evaluating their positions in lithium stocks, especially given the broader market's downward trend.
The implications of Cramer's analysis suggest that investors may need to reassess their strategies regarding LAC, particularly in light of the current market conditions and the potential for further declines in stock performance.
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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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