Jefferies raises PT for Australia's Allkem on Arcadium's NPV forecasts

Allkem

09/11/2023 24:12

** Analysts at Jefferies raise price target for Lithium
miner Allkem  AKE.AX  46% to A$14.00; maintains "buy"
    ** Co's shares up as much as 1.08% to A$9.4, set for its
second consecutive gain
    ** Allkem and U.S.-based lithium producer Livent announced a
$10.6 million merger on May 10 to form Arcadium Lithium PLC 
    ** The brokerage says the strategic rationale of the deal
doesn't outweigh the risks to Allkem shareholders
    ** Analysts at Jefferies expect Arcadium's NPV to be $11,745
million, in favour of Allkem which owns 56% stake in co
    ** 13 of 17 analysts rate the stock "buy" or higher, three
"hold" and one "sell" or lower; their median PT is A$14.25 –
LSEG data
    ** Stock down fallen 17.3% this year

($1 = 1.5603 Australian dollars)

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))