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hoek67

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22/01/24

13:15

Post #: 71999864
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Originally posted by mygalz: ↑

LTM - ARCADIUM LITHIUM PLC
Citi rates LTM as Initiation of coverage with Buy (1) - Citi initiates coverage of Arcadium Lithium, a product of the late-2023 merger between Allkem and Livent, with a Buy rating and $10.75 target price.

The analysts highlight Arcadium Lithium provides the only exposure on the ASX to a fully integrated lithium product suite. The quality,cost and size of the upstream portfolio, along with the company's growth outlook, is considered a standout compared to peers.

On the prospects for growth, Citi sees unique positioning with Sal de Vida, and two Canadian integrated spodumene projects, James Bay and Nemaska. Production is expected to double by the end of the decade.

The broker also sees limited downside to current spot lithium pricing.

Target price is $10.75 Current Price is $8.09 Difference: $2.66 If LTM meets the Citi target it will return approximately 33% (excluding dividends, fees and charges). Current consensus price target is $13.83, suggesting upside of 70.9%(ex-dividends)The company's fiscal year ends in December.

Forecast for FY24:

Citi forecasts a full year FY24 dividend of 0.00 cents and EPS of 13.40 cents . At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 60.37. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.0, implying annual growth of -59.2%. Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 0.2%. Current consensus EPS estimate suggests the PER is 19.3.

Forecast for FY25:

Citi forecasts a full year FY25 dividend of 0.00 cents and EPS of 66.00 cents . At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.26. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 68.2, implying annual growth of 62.4%. Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 0.4%. Current consensus EPS estimate suggests the PER is 11.9.

Market Sentiment: 1.0All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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Getting played like the pied pipers flute ATM.

LTM Price at posting: $7.49 Sentiment: Buy Disclosure: Held
6 Upvote

0 Great analysis

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