Arcadium Lithium shares buoyed by Macquarie valuation upgrade
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The news: Arcadium Lithium shares gained after Macquarie increased its valuation on the lithium producer, following its strategy day.
The numbers: Arcadium shares were trading 1.7% higher at $4.14 by 12:20pm AEST, having shed more than 60% since January.
Macquarie retained its 'outperform' rating and increased its target price by 4% to $5.30. It also revised its earnings per share forecasts by -39% in CY24, 27% in CY25 and -87% in CY26.
The context: Macquarie analysts noted that Arcadium's strategy day provided clarity on medium-term performance and highlighted the company's prudent balance sheet management and a flexible growth profile.
What they said: "Management's prudent move to simplify portfolio, slow expansion speed, conserving cash and maintaining margins highlight its growth optionality," Macquarie's analysts said.
"Additional portfolio optimisation could further streamline the business," they said.
The source: Macquarie research
