Atlantic Lithium Ltd (AIM:ALL, OTCQX:ALLIF, ASX:A11) was upgraded to 'buy' from 'hold' by broker Liberum after the company rejected a conditional offer put forward by major shareholder Assore.
The offer, of 33p per share, was made last week and was the second identically-priced offer made in the past two months, the company revealed, with the relationship with Assore said to remain “supportive and constructive”.
Liberum analyst Yeun Low said the rating was being upgraded, with the target price increased to 39p from 22p, based on an upside case valuation but retaining a 25% 'risk haircut’.
"In the absence of competing offers, we believe our updated target price balances upside potential against the various risks associated with (and not limited to) permitting, funding, exploration, development, construction and ramp-up," the analyst wrote in a note to clients on Wednesday.
In particular, he noted that the price of spodumene concentrate has fallen to US$1,690 per tonne.