Wedbush analysts on Thursday weighed in on Lithium Americas Corp (TSX:LAC, NYSE:LAC)’s third-quarter results, urging caution even as the company makes progress on the buildout of its Thacker Pass facility in Nevada.
“While the company makes steady progress quarter after quarter, we remain on the sidelines as the Thacker Pass facility continues steady progress on the construction front with plenty of liquidity options to tap into to fund future operations with the US Administration laying a more favorable path for Lithium America to operate in," the analysts wrote in a note to clients.
They maintained their ‘Neutral’ rating and $8 per share price target on the stock.
The analysts noted that Lithium Americas currently has $385.6 million in cash and restricted cash on its balance sheet, down from $509.1 million in the previous quarter as the company continues to accelerate the construction process.
They added, however, that 25% of its total capital project structure is exposed to the ongoing tariff environment, with most of its equipment and construction material coming from international sources.
Lithium Americas reaffirmed its construction completion timeline for Phase 1 of Thacker Pass in late 2027, noting that 80% of engineering design is complete and 90% will be done by the end of this year.
NYSE-listed shares of Lithium Americas slipped 1.1% to $4.55 in late-morning trading on Friday.