On Thursday, Roth/MKM maintained a Buy rating on Standard Lithium Ltd. (NYSE: SLI) but lowered its price target to $3.50 from $4.25. The adjustment follows Standard Lithium's recent announcement of a partnership with Equinor ASA (NYSE:EQNR) (EQNR-NC) on May 8, 2024, aimed at advancing its SWA and ETX projects.
The partnership is seen as a beneficial move for Standard Lithium as it provides the company with immediate working capital and helps reduce the costs associated with advancing the SWA and ETX projects. The collaboration with Equinor ASA, a company known for its energy investments, is expected to bolster Standard Lithium's project development efforts.
Despite the positive outlook on the partnership, the price target was revised to reflect the pro rata valuations of these assets. The lowered price target is a representation of the current valuation while still recognizing the potential growth and value of Standard Lithium's projects.
The analyst from Roth/MKM reiterated the Buy rating, signaling confidence in Standard Lithium's ongoing operations and its future prospects. The company's strategic move to secure a partnership with Equinor ASA is anticipated to enhance its project development trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.