Lithium Americas (LAC) saw a significant reversal of its gains in the past week as investors soured on the stock. Earlier, the U.S. Department of Energy took a 5% equity stake in the company and its Thacker Pass lithium project in Nevada. Shares surged by over 227% from Sept. 23 to an Oct. 14 close above $10.
Wall Street now believes the rally was overdone, as J.P. Morgan analyst Bill Peterson downgraded the stock from “Neutral” to “Underweight,” setting a $5 price target. This was a 50% downside from the price back then, and LAC stock has cratered to $7.09 as of this writing.
