did they not just put out a Sell rating... @NewbieHK
UBS upgrades lithium price forecasts, stocks
Alex Gluyas
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UBS has upgraded its lithium price forecasts and stock valuations, noting that the battery metal will remain in a physical deficit for the near and medium term.
The broker refreshed its outlook following China’s rapid reopening and growing expectations for a sales rebound post Chinese New Year.
“We believe lithium markets will remain in deficit for the near and medium term before moving to structural deficit long term,” Lachlan Shaw, analyst at UBS.
“This needs a demand rationing price, for which we have seen no evidence in the past 12 months despite record-high prices that are orders of magnitude above costs.”
UBS upgraded its spodumene/chemical prices by up to 50 per cent which led to earnings upgrades across its coverage.
The broker upgraded Pilbara Minerals to “neutral”, and Mineral Resources and IGO to “buy”. UBS maintained its “buy” rating on Allkem.
