ASX 200 lithium stocks Core Lithium Ltd (ASX: CXO) and IGO Ltd (ASX: IGO) have been downgraded by a top broker despite predictions of a resurgence in lithium prices over the next few months.

As we reported last week, there are expectations of a 40% rebound in lithium prices by the end of 2023.

So, what’s happening with these two particular ASX 200 lithium stocks?

ASX 200 lithium stocks get the thumbs down

As reported in The Australian, JPMorgan has downgraded both Core Lithium shares and IGO shares.

The broker has cut its rating on Core Lithium to underweight and cut IGO to neutral with a 12-month share price target of $16.

The IGO share price is currently trading at $14.88. So despite the downgraded rating, JP Morgan anticipates a 7.5% increase in the share price over the next 12 months.

Let’s review what’s been happening with these two ASX 200 lithium stocks.

Core Lithium approves budget for second mine at Finniss

The latest price-sensitive news from Core Lithium was an update about its flagship Finniss Project in the Northern Territory.

The board has approved funding for the early works of the second proposed mine at Finniss, called the BP33 underground project.

The company expects to spend $45 million to $50 million on the box-cut and preliminary site establishment for BP33, with completion by the end of the first quarter of 2024.

That’s when the miner hopes to make a final investment decision on BP33.

IGO sells JV interest and raises stake in ASX metals junior

IGO isn’t just an ASX 200 lithium stock. The company also produces a lot of nickel.

The latest price-sensitive news from IGO related to its 51% joint venture interest in the Kanowna East, Emu Lake, and Fraser South projects in Western Australia.

IGO has signed a binding agreement with gold and nickel explorer Metal Hawk Ltd (ASX: MHK) to sell its JV interest in exchange for an increased shareholding in Metal Hawk from 5.4% to 8.2%.

Lithium prices

The lithium carbonate price has lifted 37% over the past month, according to Trading Economics data.

It currently sits at US$32,342.90.

Citigroup says the price could rise to between US$35,000 and US$40,000 per tonne by the end of 2023.

Macquarie thinks the price could go as high as US$57,500, and UBS is tipping US$54,750 per tonne.

The post 2 ASX 200 lithium stocks just downgraded by a top broker appeared first on The Motley Fool Australia.

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More reading

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Motley Fool contributor Bronwyn Allen has positions in Core Lithium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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