Peeling Back The Layers: Exploring Livent Through Analyst Insights

Livent 0.00%

LTHM

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Throughout the last three months, 8 analysts have evaluated Livent (NYSE:LTHM), offering a diverse set of opinions from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 2 4 1 0
Last 30D 0 0 1 0 0
1M Ago 0 0 1 1 0
2M Ago 0 1 1 0 0
3M Ago 1 1 1 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $21.38, a high estimate of $32.00, and a low estimate of $15.00. This current average has decreased by 17.77% from the previous average price target of $26.00.

price target chart

Exploring Analyst Ratings: An In-Depth Overview

An in-depth analysis of recent analyst actions unveils how financial experts perceive Livent. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
John Roberts Mizuho Raises Neutral $20.00 $15.00
Charles Neivert Piper Sandler Lowers Underweight $15.00 $18.00
Eric Joseph JP Morgan Lowers Neutral $15.00 $25.00
Joel Jackson BMO Capital Lowers Market Perform $20.00 $24.00
Aleksey Yefremov Keybanc Lowers Overweight $29.00 $32.00
Charles Neivert Piper Sandler Lowers Neutral $19.00 $33.00
Corinne Blanchard Deutsche Bank Lowers Buy $21.00 $27.00
Aleksey Yefremov Keybanc Lowers Overweight $32.00 $34.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Livent. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Livent compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for Livent's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Livent's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Livent analyst ratings.

Get to Know Livent Better

Livent is a pure-play lithium producer that was formed when FMC spun off its lithium business in October 2018. The company plans to merge with another pure-play lithium producer, Allkem, in an all-stock transaction that should close by the end of 2023. Livent should benefit from increased lithium demand via higher electric vehicle adoption, as lithium is a key component of EV batteries. The company's low-cost lithium carbonate production comes from brine resources in Argentina. Livent also operates downstream lithium hydroxide conversion plants in the United States and China and has a 50% stake in a fully integrated Canadian lithium project.

Livent: A Financial Overview

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Negative Revenue Trend: Examining Livent's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -8.72% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Materials sector.

Net Margin: Livent's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 41.34%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 5.15%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Livent's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.76% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.14.

Understanding the Relevance of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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