Li-Cycle's Market Conditions Trigger 27% Price Target Cut By This Analyst

Charden Capital Markets analyst Brian Dobson reiterated a Buy rating on the shares of Li-Cycle Holdings Corp LICY but lowered the price target to $13 from $18, primarily citing market conditions.
The company reported Q3 sales of $(1.97) million, missing the consensus of $10.63 million.
Li-Cycle is a lithium-ion battery resource recovery and lithium-ion battery recycler in North America.
Related: Li-Cycle Misses Q3 Consensus As Higher Nickel, Cobalt Prices Weigh
The analyst noted that LICY's spoke and hub construction timetable is on track, driving EBITDA profitability in 2024E.
Beginning in 2023E, the analyst expects the New York hub refining facility to open and for recent capacity increases at U.S. spokes to bear fruit.
However, the analyst reduced his outlook due to falling commodity prices and near-term raw material allocation issues.
Meanwhile, the analyst remains positive on Li-Cycle's growth trajectory as it is underpinned by significant green energy macro tailwinds.
Price Action: LICY shares are trading lower by 4.05% at $6.035 on the last check Friday.
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