Berenberg cuts AMG on project delivery, lithium downside risks

AMG Critical Materials NV

31/07/2023 08:09

** Berenberg cuts AMG Critical Materials  AMG.AS  to "hold"
from "buy", citing "plenty of operational delivery risk" while
also being cautious on the group's EBITDA guidance realisation
    ** It sees high risks in H2 and FY 2024, stating that
"projects will need to be delivered on time, on budget, and
ramped up in line with guidance" for the shares to reflect their
full value
    ** The broker also sees downside risk on lithium prices,
believes the group could achieve its $650 mid-term EBITDA
targets, but "question whether it can do so within five years"
as planned
    ** Berenberg however still believes in the long-term story
    ** Shares in AMG closed down 16% on Wednesday after Q2
results
    ** Among the 6 analysts covering the stock, three rate it
"strong buy" or "buy and ​three rate it "hold"

 (Reporting by Olivier Cherfan)
 ((olivier.cherfan@thomsonreuters.com))