The Argosy Minerals Limited (ASX: AGY) share price was a strong performer in 2022.
During the 12 months, as you can see below, the lithium producerâs shares rose an impressive 78%.
Can the Argosy Minerals share price keep rising?
The good news for investors is that one leading broker believes Argosy Minerals shares can rise further in 2023.
According to a recent note out of Canaccord Genuity, its analysts have a speculative buy and 85 cents price target on the Argentina-based lithium producer’s shares.
Based on the current Argosy Minerals share price of 65.2 cents, this implies potential upside of 30% for investors over the next 12 months.
What did the broker say?
Canaccord Genuity highlights that Argosy Minerals recently produced its first battery quality lithium carbonate during commissioning at its 2,000tpa Rincon operation. It believes the production of 250kg of 99.76% lithium carbonate ârepresents a significant validation of its production process.â
And while the broker acknowledges that there is still work to be done, it has been pleased with its progress so far. The broker commented:
The company must now ramp up to nameplate capacity over the first half of 2023 and maintain quality metrics. However, it marks the transition of AGY becoming a producer of lithium carbonate, one of only two ASX-listed companies to do so to date.
Canaccord Genuity also provided investors with an idea of what to expect from the companyâs financials in 2023 in 2024. It is forecasting EBITDA of $50 million on revenue of $68.8 million in FY 2023 and EBITDA of $62.5 million on revenue of $82.7 million in FY 2024.
Though, the broker sees scope for higher earnings if lithium prices donât soften as much as it is forecasting. It explained:
We have trimmed our sales number for 2023E leading to a 25% fall in EBITDA to A$50m. [â¦] If we were to run a spot price of US$67,350/t as a scenario, our 2023E EBITDA would lift 66% to A$83m and our 2024E EBITDA would lift 117% to A$137m.
All in all, the broker appears to see Argosy Minerals as a top option in the lithium space for investors with a high tolerance for risk.
The post This ASX 300 lithium share boomed in 2022, and still has 30% upside: broker appeared first on The Motley Fool Australia.
FREE Guide for New Investors
Despite what some people may say – we believe investing in shares doesn’t have to be overwhelming or complicated…
For over a decade, we’ve been helping everyday Aussies get started on their journey.
And to help even more people cut through some of the confusion “experts’” seem to want to perpetuate – we’ve created a brand-new “how to” guide.
Yes, Claim my FREE copy!
*Returns as of January 5 2023
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- These were the 3 best performing ASX lithium shares of 2022
- 3 ASX All Ordinaries shares up by more than 60% in 2022
- Why Argosy Minerals, Arafura, Deep Yellow, and Pro Medicus shares are charging higher
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.
from The Motley Fool Australia https://ift.tt/H7ES5wn
Leave a Reply