Why This Analyst Believes Li-Cycle Is In A 'Sweet Spot'

Li-Cycle Holdings Corp LICY is a pure-play lithium-ion recycle and the largest North American company in the space, according to Wedbush.

The Li-Cycle Analyst: Daniel Ives initiated coverage on Li-Cycle with an Outperform rating and a price target of $14.

The Li-Cycle Thesis: The company seems poised to continue leading in the battery recycling space and is “in the sweet spot of a pending green tidal wave with battery recycling front and center,” Ives wrote in a note.

See Also: Li-Cycle Misses On Q3 Earnings Estimates

“Co-founders Ajay Kochhar and Tim Johnston have executed their strong business model to create partnerships and capitalize on the future of clean energy, as they have created a sustainable and cost-efficient method to recycle battery-grade materials,” the analyst wrote.

“The current global lithium-ion battery market is robust, already worth over $41.1 billion. The future of the battery market has tremendous growth prospects, expecting to increase with a 12.3% CAGR through 2030 and forecasted to be worth over $115 billion while a new study suggests that by 2050, 50% of cars on the road could be electric, ultimately reducing CO2 emissions by 1.5 Gt annually,” he added.

LICY Price Action: Shares of Li-Cycle had risen by 8.77% to $9.55 at the time of publication Monday.