Evaluating Arcadium Lithium: Insights From 8 Financial Analysts

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In the preceding three months, 8 analysts have released ratings for Arcadium Lithium ALTM, presenting a wide array of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 2 5 1 0
Last 30D 0 0 1 0 0
1M Ago 0 0 1 1 0
2M Ago 0 2 3 0 0
3M Ago 0 0 0 0 0

In the assessment of 12-month price targets, analysts unveil insights for Arcadium Lithium, presenting an average target of $6.72, a high estimate of $11.00, and a low estimate of $4.50. This current average represents a 54.19% decrease from the previous average price target of $14.67.

Interpreting Analyst Ratings: A Closer Look

The standing of Arcadium Lithium among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
John Roberts Mizuho Lowers Neutral $5.00 $6.00
Charles Neivert Piper Sandler Announces Underweight $4.50 -
Jeffrey Zekauskas JP Morgan Announces Neutral $5.00 -
John Roberts Mizuho Lowers Neutral $6.00 $8.00
Austin Yun Macquarie Announces Outperform $7.30 -
Joel Jackson BMO Capital Announces Market Perform $7.00 -
Kevin McCarthy Vertical Research Announces Hold $8.00 -
Pavel Molchanov Raymond James Lowers Outperform $11.00 $30.00

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Arcadium Lithium. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Arcadium Lithium compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Arcadium Lithium's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Arcadium Lithium's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Arcadium Lithium analyst ratings.

Get to Know Arcadium Lithium Better

Arcadium Lithium is a pure-play lithium producer that was formed in the Allkem-Livent merger in January 2024. Arcadium should benefit from increased lithium demand via higher electric vehicle adoption, as lithium is a key component of EV batteries. The company's low-cost lithium carbonate production comes from two brine resources in Argentina. Arcadium also produces spodumene, a hard rock lithium upstream concentrate, from a mine in Australia and operates downstream lithium hydroxide conversion plants in the United States and China.

A Deep Dive into Arcadium Lithium's Financials

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Arcadium Lithium's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -8.72% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Materials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Arcadium Lithium's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 41.34%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 5.15%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Arcadium Lithium's ROA stands out, surpassing industry averages. With an impressive ROA of 3.76%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.14.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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