10 Best EV Penny Stocks to Buy

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6. Lithium Americas Corp. (NYSE:LAC)

Lithium Americas Corp. (NYSE:LAC) is one of the 10 best EV penny stocks to buy.

On April 6, Scotiabank reaffirmed its Sector Perform rating for Lithium Americas Corp. (NYSE:LAC). The firm, however, cut the target price on the stock from $7 to $5, which still yields around 8% upside potential at the current level.

Back on March 24, BMO Capital also reduced the price target on Lithium Americas Corp. (NYSE:LAC) from $6 to $4.5, while maintaining a Market Perform rating on the stock.

Both the firms attributed their respective downward adjustments to the assumption of elevated capital expenditure inflation at Thacker Pass, which has risen to 15% from the previous 10%. The firms also noted the dilution effect of at-the-market equity offerings, which is leading to reduced valuation expectations.

However, the broader consensus still sees good upside in Lithium Americas Corp. (NYSE:LAC). As of the April 24 closing, the stock yields more than 25% upside potential, based on a $5.80 target price.

Lithium Americas Corp. (NYSE:LAC) is a developer and operator of chemical processing facilities and lithium deposits. The company has an extensive focus on battery-grade lithium for the electric vehicles supply chain. Its Thacker Pass project is aimed towards industrial-scale lithium production in the United States.

While we acknowledge the potential of LAC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LAC and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best EV Penny Stocks to Buy.

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