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Bank of America raised its rating on Adecoargo to buy , with its price target pointing to more than 26% upside. The firm maintained its $450 price target on the pizza chain, which implies shares could jump 12.6%. Analyst Doug Anmuth upped his price target by $15 to $220, implying shares could still gain more than 13%. The firm's new $230 price target implies the overweight-rated stock could gain 18.5% over the next 12 months. The analyst increased his 2024 year-end price target to $30 per share, which suggests 32.2% potential upside from Monday's close.
Persons: Piper Sandler, Oppenheimer Oppenheimer, Brian Bittner, Bittner, — Pia Singh, Jessica Reif Ehrlich, Ehrlich, Doug Anmuth, Morgan Stanley, Benjamin Swinburne, Roth, Chip Moore, Moore, Nuvera, Yuri Fernandes, Fernandes, , Piper Sandler downgrades Albemarle, Charles Neivert, Neivert, Isabella Simonato, Fred Imbert Organizations: CNBC, Bank of America, Spotify, Analysts, JPMorgan, Yale, Hyster, Argentine Locations: Argentina, Albemarle, 4Q23, China, Europe, 2024E, 2025E
Lower prices, oversupply to weigh on lithium miners
  + stars: | 2023-10-30 | by ( Arunima Kumar | ) www.reuters.com   time to read: +2 min
Lithium miners have had a tough year as weak electric vehicle (EV) sales growth led to high stockpiles and sent prices of the metal tumbling down. The Chinese spot battery grade lithium carbonate prices, fell around 45% to 165,000 Chinese Yuan ($22,561.63) per tonne during the July-September quarter. Reuters GraphicsAnalysts also flagged additional supplies from new projects coming online to further weigh on lithium prices. Albemarle is expected to report quarterly results on Wednesday, while smaller rival Livent is scheduled for Tuesday. ($1 = 7.3133 Chinese yuan renminbi)Reporting by Arunima Kumar in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.
Persons: Ivan Alvarado, Raymond James, Pavel Molchanov, Overcapacity, Jefferies, Laurence Alexander, Piper Sandler, Charles Neivert, Kyle Winborne, Arunima Kumar, Krishna Chandra Organizations: REUTERS, Albemarle Corp, EV, Reuters, Reuters Graphics, Thomson Locations: Albemarle, Antofagasta region, Chile, oversupplied, China, Livent, Bengaluru
Albemarle could get a boost as electric vehicles grow increasingly popular, said Bryn Talkington, managing partner of Requisite Capital Management. "As the world continues to move to EV … they're all gonna need a ton of lithium," Talkington said, calling it a "secular tailwind." ALB 5Y mountain Albemarle stock cha Her trade comes about a week after the company provided a 2023 strategy update. Piper Sandler initiated coverage of the stock at overweight last week, with analyst Charles Neivert setting a price target of $310. His price target implies the stock could gain 8.4% over the next 12 months from where it closed Wednesday.
Albemarle is a "lithium pure play," with strong earnings power to match, according to Piper Sandler. Piper analyst Charles Neivert began research coverage of Albemarle with an overweight rating, saying investors are underestimating the miner's earnings growth outlook. Lithium is one of five critical minerals required in electrical vehicle batteries, according to the Congressional Research Service. Nievert expects that strong lithium prices will continue to boost earnings as Albemarle expands its capacity — even if lithium pricing eases off from 2022 levels. "Despite the cooling, we still see significant increases in earnings in 2023 as 1H23 earnings comps will be substantially above year ago levels.
Driving the firm's bullish case is the disconnect between supply and demand for lithium, a critical EV material. Piper believes the market will remain in a deficit for at least the next three to four years, and potentially longer, "which will help sustain lithium pricing." Shares of Livent slid nearly 12% last week, but the stock has still registered a 25% gain for 2022. The firm believes that any pullback in auto sales would be focused on internal combustion engines rather than electric vehicles. "We will further localize the lithium supply chain in North America over the course of the agreement," GM added.
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