Li-Cycle's Market Conditions Trigger 27% Price Target Cut By This Analyst

  • Charden Capital Markets analyst Brian Dobson reiterated a Buy rating on the shares of Li-Cycle Holdings Corp LICY but lowered the price target to $13 from $18, primarily citing market conditions.
  • The company reported Q3 sales of $(1.97) million, missing the consensus of $10.63 million.
  • Li-Cycle is a lithium-ion battery resource recovery and lithium-ion battery recycler in North America.
  • RelatedLi-Cycle Misses Q3 Consensus As Higher Nickel, Cobalt Prices Weigh
  • The analyst noted that LICY's spoke and hub construction timetable is on track, driving EBITDA profitability in 2024E.
  • Beginning in 2023E, the analyst expects the New York hub refining facility to open and for recent capacity increases at U.S. spokes to bear fruit.
  • However, the analyst reduced his outlook due to falling commodity prices and near-term raw material allocation issues.
  • Meanwhile, the analyst remains positive on Li-Cycle's growth trajectory as it is underpinned by significant green energy macro tailwinds. 
  • Price Action: LICY shares are trading lower by 4.05% at $6.035 on the last check Friday.
  • Photo Via Company
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