Allkem's revised capital costs higher than expected - Jefferies

Allkem

25/09/2023 21:57

** Jefferies says revision of Allkem's  AKE.AX  project
timeline continue to show the difficulty in bringing lithium
units to markets
    ** Jefferies cuts PT to A$14 from A$16.5, maintains "buy"
rating
    ** The lithium miner on Monday flagged increase in capital
costs for its projects, including the Canadian James Bay project
    ** Brokerage says AKE's total capital required for growth
projects was revised 23% higher than forecasts
    ** Short-term we would expect lithium prices to drift lower
into year end - Jefferies
    ** 15 of 18 analysts rate the stock "buy" or higher, three
"hold"; their median PT is A$17.3 – LSEG data 
    ** YTD stock up 3.4% , as of last close 
    


 (Reporting by Navya Mittal in Bengaluru)
 ((navya.mittal@thomsonreuters.com))