Lithium producer Livent edges up, even after BofA analyst recommended selling

Shares of Livent Corp. edged up 0.3% in afternoon trading Monday, even after BofA Securities analyst Matthew DeYoe recommended investors sell, saying the lithium producer’s stock looks “expensive” as lithium prices appear to be near a peak. DeYoe noted that spot prices for lithium, which have been in high demand as it’s used in electric vehicle (EV) batteries, have been holding near a peak about about $70,000 per metric ton since February. “[W]e think the peak is more or less in,” DeYoe wrote in a note to clients. “Can lithium stocks outperform when prices are falling? We suspect no.” And based on his analysis of net-asset value at peak lithium prices suggests Livent’s stock is “quiet expensive,” so he cut his rating to underperform from neutral. His $27 price target on the stock implies about 12% downside from current levels. Over the past three months, Livent’s stock has run up 38.6%, while the Global X Lithium & Battery Tech ETF has lost 6.8% and the S&P 500 has declined 4.0%.

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