JPMorgan increases its price targets for Vancouver-based Lithium Americas to $39/C$49 from $28/C$35 on higher lithium price forecasts and its pending acquisition of Millennial Lithium. "Spodumene and lithium carbonate and hydroxide spot prices have continued to move higher, and we think strong demand and lagging supply will support higher prices for longer," JPMorgan says, maintaining the stock at overweight.
Lithium Americas this week agreed to acquire Millennial for about $400M. JPMorgan sees Millennial as being accretive to net present value with upside potential from synergies. Canadian-traded Lithium Americas shares jump 13% to C$47.14. (michael.dabaie@wsj.com)