On Friday, Roth/MKM revised its price target for Atlas (NYSE:ATCO) Lithium Corp. (NASDAQ: ATLX), reducing it to $25.50 from the previous $36.00, but the firm continues to endorse a Buy rating for the stock. The adjustment reflects a response to the ongoing weakness in lithium prices as the second half of 2024 begins.
Atlas Lithium Corp. has also announced a postponement of its initial resource estimate to the fourth quarter of 2024, opting instead to proceed directly to a Definitive Feasibility Study (DFS).
The firm remarked that the current state of lithium prices has necessitated a revision of their forecasts to align with the market's slower-than-expected recovery. This assessment, coupled with the company's decision to delay its initial resource estimate, is cited as the basis for the lowered valuation of Atlas Lithium's shares.
The delay in the initial resource estimate, which is now expected in Q4 2024, is seen as a significant factor in the reassessment of the company's stock value. Atlas Lithium's choice to bypass the preliminary stages and move straight to a DFS has been factored into the new price target.
Roth/MKM's revised price target of $25.50, down from $36.00, reflects the challenges faced by Atlas Lithium in the current market environment. Despite these adjustments, the firm maintains a positive outlook on the stock with a Buy rating, indicating a continued belief in the company's potential.
The new price target and the maintained Buy rating suggest that while Atlas Lithium is navigating through market headwinds and strategic shifts, Roth/MKM still foresees growth opportunities for the lithium producer.
Atlas Lithium's next significant milestone, the delivery of the DFS, is anticipated to provide further insights into the company's prospects and resource potential.
In other recent news, Atlas Lithium Corporation has seen a significant shift in its leadership team. The company announced the appointment of Tiago Moreira de Miranda as its new Chief Financial Officer, Principal Accounting Officer, and Treasurer.
This move follows the resignation of the former CFO, Gustavo P. Aguiar, who left the company for unrelated reasons. Miranda, a seasoned financial expert in the mining sector, previously served as CFO of Apollo Resources Corporation and has held significant positions at Horizonte Minerals Plc, Equinox Gold (NYSE:EQX), and Ferrous Resources Ltd.
His compensation package includes a monthly salary of $15,000, performance-based compensation, a discretionary bonus, and 40,000 time-based restricted stock units under the company's 2023 Stock Incentive Plan. Atlas Lithium has clarified that Miranda's appointment is not due to any related party transaction and that no family relationships exist between him and any director or officer of the company.
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