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Lithium Americas -12% after downgrade by Roth Capital, PT revised to $13.5

posted on Oct 21, 2020 04:42PM

I was convinced that many LAC investors would negatively view the delay in production at Cauchari-Olaroz from "early 2021" to "early 2022". Apparently that has come to transpire into investor reality as evidenced in the article from Seeking Alpha:

Lithium Americas -12% after downgrade by Roth Capital, PT revised to $13.5

Oct. 21, 2020 3:48 PM ET|About: Lithium Americas Corp. (LAC)|By: Manshi Mamtora, CFA, SA News Editor

Lithium Americas (LAC -12.2%) downgraded to Neutral from Buy by Roth Capital analyst Joe Reagor with a PT of $13.50, down from $15.

This happened after the company announced that it now anticipates initial production from the Cauchari mine to come in 2022.

Analyst adds, cash flow expectations has been pushed out by about nine months and increased his interest expense assumptions due the Argentina project delay, caused by COVID-led workforce restrictions.

Reagor noted, the company's announcement of an at the market offering for up to $100M could provide additional pressure on the shares.

Quick look at profitability here.

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