Wow that is way conservative IMO.
Let's not forget the SP lows of last November assumed that the price margin would be USD $400 per T (and the actual is $530 - $600 per T). They also estimated 120kT was going to be the maximum achievable output (try 160kT now). When the brakes were off then it went to the 0.6's and they are 'upgrading' to Neutral now.
This level only makes sense to me (to not have a buy rating) if :
1) The SP is compared with the only the lows e.g. of Last November.
2) The nameplate production announcement (worth 40kT per year at whatever new price is negotiated all 100% free cash flow) is completely ignored.
3) A higher Australian dollar is priced in.
4) Lithium pricing is assumed not to increase from where it is now.
5) The worth of all GXY projects increases linearly.
But then this is all just my opinion.
GLTA
Macquarie Updated GXY to Neutral, page-14
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