The Latest Analyst Ratings For Arcadium Lithium

Providing a diverse range of perspectives from bullish to bearish, 10 analysts have published ratings on Arcadium Lithium ALTM in the last three months.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Arcadium Lithium, presenting an average target of $4.6, a high estimate of $9.00, and a low estimate of $3.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 21.37%.

Diving into Analyst Ratings: An In-Depth Exploration

A comprehensive examination of how financial experts perceive Arcadium Lithium is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Arcadium Lithium. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Arcadium Lithium compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Arcadium Lithium's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Arcadium Lithium's market position. Stay informed and make well-informed decisions with 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: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Arcadium Lithium displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 7.93%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Materials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 33.67%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 1.38%, the company showcases effective utilization of equity capital.

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: Arcadium Lithium's debt-to-equity ratio is below the industry average. With a ratio of 0.11, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: What Are They?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.

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