(MT Newswires) -- National Bank Financial on Wednesday reiterated its outperform rating on the shares of American Lithium (LI.V) and its C$7.10 price target as it resumed coverage of the company as a planned spinout of a uranium property was delayed.
"LI recently announced the decision to defer spinning out the Macusani uranium project, citing diminished strength of resource markets as one reason the spin-out has been postponed. We've incorporated fiscal Q1/24 results and increased the estimated exploration costs at Macusani. Our Outperform rating is justified by LI's attractive lithium portfolio. While the spin-out of the Macusani uranium project has been postponed, we maintain our view that it represents a re-rating catalyst positioning the company as a pure-play lithium developer. Our decreased target is primarily due to our revised spending assumptions following the decision to retain the Macusani uranium project and to update the PEA. Our target price is based on ascribing a multiple of 0.85x to our fully financed project NAV plus corporate adjustments." analyst Lola Aganga wrote