5 Cheap Lithium Stocks to Buy According to Analysts

4. Arcadium Lithium plc (NYSE:ALTM)     

Average Price Target Based on Analyst Ratings: 8.83             

Upside Potential as of 21 March: 87.87%

P/E Ratio: 7.05

If you’re out searching for a budget-friendly lithium stock option, you must keep an eye on Arcadium Lithium (NYSE:ALTM), which is 6th on our list of 12 Cheap Lithium Stocks to Buy According to Analysts.

This company, which is a merger of Livent and Alkem, specializes in production of various lithium chemicals, specifically battery-grade lithium hydroxide and carbonate, butyllithium, and pure lithium metal – all major components for the electric vehicle market.

The merger that took place on January 4, 2024, aims to attract some sweet synergy and cost savings, bring in a potential value between $60 to $80 million this year. Moreover, they are also looking on to enhancing the production game, with a special focus on boosting their lithium carbonate and hydroxide volumes by over 40% in 2024, also targeting between 50,000 and 54,000 tons in lithium carbonate equivalence.

Also, their earnings report for the period ending December 2023, Arcadium Lithium plc (NYSE:ALTM) showed that the company didn’t really meet the expectations, falling short with an EPS of $0.34, while the expectations were stuck at $0.36. With their revenue game hitting sweet spot in the last quarter of 2023 (Livent boasting $182 million and Alkem’s Olaroz carbonate facility hitting $96 million), and merged entity’s expected revenue growth rate soaring past 48.6%, analysts’ “hold” stance in relation to the stock seems to indicate a fair value to expect in future from the stock.