Credit Suisse has issued another spodumene price increase through to 2023, noting Allkem suggests further upside risk to the broker’s forecasts given high spot pricing.
With a cheaper priced contract set to complete in the June quarter, the broker expects Allkem prices to accelerate towards record spot prices in the December half. Elsewhere, covid impacts have pushed the Sal de Vida startup back six months to the first half of 2023.
The Outperform rating is retained and the target price increases to $13.70 from $13.20.
Sector: 0.
Target price is $13.70.Current Price is $11.61. Difference: $2.09 – (brackets indicate current price is over target). If AKE meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
