Piedmont Lithium Price Target Lowered
B. Riley Cuts Piedmont Lithium's PT to 57 From 95, Notes Recent Volatility, Increasing Cost of Capital
Piedmont Lithium (PLL) has had its price target trimmed by B. Riley Financial Group. The firm lowered its target to $57 per share from $95, citing recent volatility and increasing cost of capital.
B. Riley's Analysis
In a note to clients, B. Riley analyst Matt Tucker said that the firm had become more cautious on Piedmont Lithium due to recent volatility in the lithium market and increasing cost of capital. Tucker noted that Piedmont Lithium's stock price had declined by more than 50% since its peak in November 2021.
Tucker also said that Piedmont Lithium's cost of capital had increased due to rising interest rates. This, he said, could make it more difficult for the company to finance its growth plans.
Piedmont Lithium's Response
Piedmont Lithium has not yet commented on B. Riley's price target cut. However, the company has previously said that it is confident in its long-term prospects.
Piedmont Lithium is developing a lithium mining and processing project in North Carolina. The project is expected to produce spodumene concentrate, which is a key ingredient in lithium-ion batteries.
The company is also exploring other lithium projects in the United States and Canada.
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