Tuesday, Canaccord Genuity reaffirmed its Buy rating on Lithium Americas Corp. (NYSE:LAC:CN) (NYSE: LAC) stock, with a steady price target of C$14.00. The firm's position remains unchanged following the evaluation of the company's first-quarter financial and operational performance.
Canaccord's analysis indicates that Lithium Americas' net asset value per share (NAVPS) and earnings before interest, taxes, depreciation, and amortization (EBITDA) projections are largely consistent with prior estimates. The target price, which reflects an equal balance between 4.0x next twelve months (NTM) EBITDA and 1.0x NAV, is projected as of April 1, 2025.
The valuation methodology employed by Canaccord Genuity suggests that Lithium Americas is currently trading at a favorable discount compared to its industry peers. This assessment has contributed to the firm's decision to maintain its Buy recommendation and the C$14.00 per share target price.
In the words of the Canaccord analyst, "Our estimates have been updated to reflect LAAC's Q1 financial and operational results. As a result, our target NAVPS and EBITDA remain largely unchanged and we maintain our C$14.00/sh target price and BUY rating."
Lithium Americas Corp., which is listed on both the Canadian and New York stock exchanges, continues to be highlighted by Canaccord Genuity as a top selection within the sector. The maintained Buy rating and price target reflect the firm's confidence in the company's value and future prospects.
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