According to the Wisdom App, Piper Sandler has assigned a neutral initial rating to lithium americas (LAC.US), with a target price of $3.90. The analyst also notes that the valuation of the stock will be highly sensitive to a series of variables related to recent major risks, including the supply and demand situation of the lithium market and the construction time of the Thacker Pass Phase 2 project.

Piper Sandler analyst Charles Neivert said lithium americas is the only lithium stock the firm rates above "shareholding" because the company's lithium production will not begin to increase until 2028, with initial funding primarily from loans from the department of energy and additional contributions from general motors.

Neivert said that loans, general motors' funds and contracts, and start-up times significantly reduce the company's risks.

The key factor of the neutral rating is that lithium americas "will not sell when we believe it is the least constructive period for final lithium demand growth," Neivert said, adding that the lithium supply and demand environment will be more balanced when Thacker Pass begins actual production, by which time pricing and profit margins will also be better.

The current lithium price is still running weak. According to S&P Global Insights, the June lithium price fell below $0.013 million per tonne, the lowest level in 35 months. Currently, the Lithium Americas stock price is not far from its 4-year low.