Credit Suisse downgrades its rating to Neutral from Outperform with the target rising to $0.95 from $0.40.
The broker expects lessons learned over the past 24 months including a period of significant lithium oversupply leading to low utilisation rates and prices to translate into more controlled future expansion.
Even so, the likelihood of going back to a period of extreme oversupply and price depression is considered low by Credit Suisse. Pilbara continues to be the broker’s preferred pick.
Sector: Materials.
Target price is $0.95.Current Price is $1.00. Difference: ($0.05) – (brackets indicate current price is over target). If PLS meets the Credit Suisse target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
