LAC stock rose 6.8% in morning trade on January 11, 2022, after the company received analyst upgrades in the wake of an acquisition. Bullish option flow was also detected in Lithium Americas stock.
Lithium Americas upgraded to Buy with $34 target at Deutsche Bank
On January 11, 2022, Deutsche Bank analyst Corinne Blanchard last night upgraded Lithium Americas to Buy from Hold with a price target of $34, up from $31. The analyst expects lithium market fundamentals to see “further tightening” and says lithium producers are well-positioned to benefit from a favorable pricing environment. Further, the upcoming production expected to start mid-year at the Cauchari-Olaroz asset warrants an upgrade, Blanchard tells investors in a research note.
Lithium Americas upgraded to Overweight from Neutral at Piper Sandler
On January 11, 2022, Piper Sandler analyst Greg Tuttle upgraded Lithium Americas to Overweight from Neutral with a price target of $41, up from $32. The company “holds the keys to a multitude of game-changing catalysts to help unlock value” as operations begin and the potential for permits at Thacker Pass come to fruition, Tuttle tells investors in a research note. The analyst thinks management’s willingness to deploy capital for road work development on the heels of provisionary permits for Thacker Pass in Nevada is a positive signal.
Lithium Americas reports Millennial Lithium shareholder approval of transaction
On January 5, 2022, Lithium Americas Corp. announced that approximately 98% of Millennial Lithium Corp. shareholders and warrantholders voted in favor to approve the acquisition by Lithium Americas of all of the issued and outstanding common shares of Millennial by way of a statutory plan of arrangement, as previously announced on November 17, 2021. Approval from Millennial shareholders and warrantholders is a pivotal step in the Transaction, and the parties are now in a position to proceed with the final court order and then closing of the Transaction, with closing expected to occur on or about January 25, 2022.
LAC Stock Bullish Option Flow
Make sure to review this lesson on option flow so that you understand the image above.
📺 Lithium Americas CEO on global demand, supply chains, and the outlook for U.S. lithium production
📈 LAC Stock Technical Analysis
The long-term trend is positive and the short-term trend is negative. It is probably better to wait until this picture becomes clearer. LAC is part of the Metals & Mining industry. There are 994 other stocks in this industry. LAC outperforms 81% of them. LAC is currently trading in the middle of its 52-week range. The S&P500 Index however is trading in the upper part of its 52-week range, so LAC is lagging the market slightly.
There is a support zone ranging from 26.75 to 26.77. This zone is formed by a combination of multiple trend lines in multiple time frames. There is a resistance zone ranging from 32.19 to 32.57. This zone is formed by a combination of multiple trend lines and important moving averages in the daily time frame.
LAC has an average technical rating and it also does not offer a high-quality setup at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when LAC stock consolidates and is a good long entry.