Here is Why Lithium Americas (LAC) is One of the Top EV Penny Stocks to Look at

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.

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