On Monday, H.C. Wainwright adjusted its price target for Atlas (NYSE:ATCO) Lithium Corp. (NASDAQ:ATLX) shares, reducing it to $40.00 from the previous $52.00, while maintaining a Buy rating on the stock. The adjustment follows the company's release of its 2023 financial results on March 27, 2024.
Atlas Lithium reported no revenue for the year 2023 and a net loss of $42.6 million, or ($4.11) per share. This is a significant increase in losses compared to the previous year, where the company posted $6.8 million in revenue and a net loss of $5.7 million, or ($1.00) per share.
The larger loss in 2023 is largely due to Atlas Lithium's increased spending on general and administrative expenses, which rose to $10.3 million from $2.7 million in 2022, and on exploration activities, where it spent $16.6 million, up from no exploration expenses the prior year.
Despite these financial results, H.C. Wainwright remains positive about the company's prospects. The firm acknowledges the financial results as less relevant to their valuation, highlighting the company's progress towards production. Atlas Lithium's management expects revenue generation to begin in the fourth quarter of 2024 from its Das Neves site, though the analyst firm does not project any revenues until early 2025.
The revised stock price target of $40.00 reflects changes to the firm's model. This new target takes into account the various adjustments made following the company's latest financial disclosures and operational updates. H.C. Wainwright reiterated its Buy rating, signaling confidence in Atlas Lithium's future performance despite the current financial figures.
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