Lithium Americas (LAC-6%) slides deep into the red after Deutsche Bank downgrades shares to Hold from Buy with a C$38.82 price target following the stock's 50%-plus rally over the past three months with momentum already priced in.
Analyst Corinne Blanchard remains very positive on the company's medium-term outlook, but she thinks the market has priced in recent positive catalysts including key permits obtained for the Thacker Pass project, expansion plans announced Cauchari-Olaroz and potential additional capacity for Thacker Pass phase 2.
"While current industry conditions remain tight and lithium producers are in a favorable position to benefit from strong demand for EVs and lithium, we believe that at this time the stock is likely to take a pause," Blanchard writes.