Assessing Arcadium Lithium: Insights From 9 Financial Analysts

9 analysts have expressed a variety of opinions on Arcadium Lithium ALTM over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Arcadium Lithium and provided 12-month price targets. The average target is $4.59, accompanied by a high estimate of $9.00 and a low estimate of $3.00. This current average has decreased by 12.74% from the previous average price target of $5.26.

Exploring Analyst Ratings: An In-Depth Overview

The perception of Arcadium Lithium by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Arcadium Lithium. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Arcadium Lithium compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Arcadium Lithium's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Arcadium Lithium's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Arcadium Lithium analyst ratings.

About Arcadium Lithium

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.

Financial Insights: Arcadium Lithium

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Arcadium Lithium's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.93% as of 30 June, 2024, showcasing a substantial increase in 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: Arcadium Lithium's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 33.67% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Arcadium Lithium's ROE stands out, surpassing industry averages. With an impressive ROE of 1.38%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Arcadium Lithium's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.87%, the company may face hurdles in generating optimal returns from its assets.

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

Analyst Ratings: What Are They?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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