GS at it again in AFR:Goldman updates ASX lithium stock...

GS at it again in AFR:

Goldman updates ASX lithium stock ratings

Tom Richardson

Share post

Goldman Sachs notes the Australian lithium sector’s total market cap has run from $15 billion to $60 billion in just two years thanks to soaring lithium prices. However, it said it expects lithium prices to fall over the second half of 2023 and into 2024 as the supply and demand outlook rebalances.

Core Lithium chief executive Gareth Manderson.

It has initiated coverage on Allkem with a buy rating and $15.20 price target, and Core Lithium with a sell rating and $1 price target.

Goldman is also buy rated on Mineral Resource, with neutral ratings on Pilbara Minerals, Independence Group, and Liontown.

“The team expect the China lithium carbonate spot (excl. VAT) price path through 1H23 to reflect the near-term tightness and lagging spodumene contract price pass-through before a decline over the second half of next year to put the 2023 average at ~US$53,300/t LCE (vs. US$16,372/t LCE previously), though their forecast of a sharp reprice lower in 2024 remains unchanged (GSe US$11,000/t) on the SD [supply/demand] outlook,” the broker said