Banter and general comments, page-13898

For those interested, research form a couple of brokers. On another service they put out forecasts to FY24 and put CXO on a PE 6.5 and a Div of 6.5 or 4.6%

COMMENTARY

Macquarie initiates coverage on Core Lithium, noting development of the company's Finniss spodumene project is well underway and remains on track to deliver first spodumene production in the first half of 2023.

The company has secured offtake agreements with Genfeng and Ya Hua for around 80% of anticipated production for the first five years, and remains in talks over a third offtake agreement with Tesla.

The broker expects timing of the development will see Core Lithium benefit from buoyant pricing. The broker initiates with an Outperform rating and target price of $1.80.

FORECAST
Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of minus -0.60 cents.
Macquarie forecasts a full year FY23 dividend of 0.80 cents and EPS of 2.20 cents

Canaccord Genuity rates ((CXO)) as Downgrade to Hold from Speculative Buy (3) –

While analysts at Canaccord Genuity lower 2022-24 electric vehicle forecasts, any lithium demand impacts are offset by increased average battery sizes.

Demand growth is expected to outpace supply until 2030 and higher pricing will be needed to incentivise new supply.

The broker raises its forecasts for 2022-25 average Li2CO3/LiOH prices, and generally prefers producers over developers in the near term on relative valuations and pricing leverage. Average target prices across the lithium coverage are raised by 15%.

Canaccord downgrades its rating for Core Lithium to Hold from Speculative Buy on valuation and raises its target to $1.50 from $1.00.

This report was published on August 22, 2022.

Target price is $1.50 Current Price is $1.40 Difference: $0.1
If CXO meets the Canaccord Genuity target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.