American Lithium Corp V.LI

National Bank Price Target C$7.10

[WallStreetGold]

American Lithium Outperform Rating Reiterated at National Bank as Coverage Resumes; Price Target Kept at C$7.10

July 26, 2023 at 11:19 am

 Share

(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

[cyber37]

No wonder National Bank has LI at over $7/share; with lithium worth at $3.28 billion (last NPV as per company evaluation) & 214.7 million shares out that is $15.28/share. Company is adding more reserves with ongoing additional drilling AND efficiency of extraction methods is getting better & better with every new study. Am I missing something here as far as share price goes; sure it is a

[Paray99]

Don't take the analysts price targets. That doesn't mean anything. This thing can easily go above $5 any time now, but $15 is too unrealistic. The value of lithium in ground cannot be divided by the total shares to get the share price... There are other expenses to get this as a product... demand only will drive this up.

[cyber37]

When referred to company worth in terms of NPV (Net Present Value) this normally implies all relevant discounting – as in time value of money, escalations – like products price and all costs associated with brining product to market - cost of extraction/mining. So yes you can use properly evaluated NPV number & shares out to value company in $/share; it is done all the time in major