Current Valuations Are 'Quite Expensive': Why This Livent Analyst Is Bearish

Livent Corp. LTHM spot prices already reflect scarcity value and “not what is grounded by marginal producer economics,” according to Bank of America Securities (BofA).

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The Livent Analyst: Matthew DeYoe downgraded the rating for Livent from Neutral to Underperform, while reducing the price target from $31 to $27.

The Livent Analyst: The shift from a DCF analysis to NAV indicates that the “current valuations are quite expensive,” DeYoe said in the downgrade note.

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“The NAV model for Livent shows continued buildout of the company’s Argentina footprint up to phase 5 expansion which would take them to 100kmt of lithium carbonate,” the analyst wrote.

“In addition, we forecast a full ramp at Nemaska and eventual full ownership of the asset. Said mine is expected to have a ~30-year mine life, so our NAV carries those revenues out to the mid-2050s,” he added.

See Also: Where Analysts Stand With Livent

LTHM Price Action: Shares of Livent had declined by 2.38% to $29.89 at the time of publication Monday.