The Latest Analyst Ratings For Arcadium Lithium

Providing a diverse range of perspectives from bullish to bearish, 8 analysts have published ratings on Arcadium Lithium ALTM in the last three months.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $4.91, a high estimate of $9.00, and a low estimate of $3.00. Highlighting a 28.32% decrease, the current average has fallen from the previous average price target of $6.85.

Analyzing Analyst Ratings: A Detailed Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive Arcadium Lithium. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Arcadium Lithium. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Arcadium Lithium compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Arcadium Lithium's stock. This examination reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Arcadium Lithium's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Arcadium Lithium analyst ratings.

Delving into Arcadium Lithium's Background

Arcadium Lithium is a pure-play lithium producer that was formed in the Allkem-Livent merger in January 2024. Arcadium should benefit from increased lithium demand via higher electric vehicle adoption, as lithium is a key component of EV batteries. The company's low-cost lithium carbonate production comes from two brine resources in Argentina. Arcadium also produces spodumene, a hard rock lithium upstream concentrate, from a mine in Australia and operates downstream lithium hydroxide conversion plants in the United States and China.

Arcadium Lithium's Financial Performance

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Arcadium Lithium's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 7.93%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Materials sector.

Net Margin: Arcadium Lithium's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 33.67%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Arcadium Lithium's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 1.38%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Arcadium Lithium's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.87%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.11.

How Are Analyst Ratings Determined?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.