Arcadium Lithium recent selloff a buying opportunity, says Argus

Argus recommends using the recent pullback in shares of Arcadium Lithium as a buying opportunity. The company’s lower earnings in Q1 were attributable to lower average realized prices for lithium, lower lithium volumes and higher operating costs, the analyst tells investors in a research note. The firm views the combination of Livent and Allkem as a strategic positive for both shareholder groups and believes that lithium will have a “long-lasting demand profile for years to come.” Argus expects the recent downtrend in lithium pricing to reverse course and slowly strengthen throughout 2024 and beyond. It keeps a Buy rating on Arcadium Lithium with a $6.25 price target.