Allkem: Growth upside outweighs the risks

About the author:

Max Vickerson
Author name:
By Max Vickerson
Job title:
Date posted:
26 September 2023, 7:00 AM
Sectors Covered:
Industrials, New Energy

  • Allkem (ASX:AKE) announced a range of cost increases across its portfolio of growth projects, whilst the company has also increased its long term commodity price assumptions, boosting its estimated project values.
  • We had largely factored in higher costs compared to the company’s older studies, albeit increasing our forecasts for some projects. Offsetting this we now include Cauchari in our valuation which lifts our price target to (login to view) after factoring in higher costs in James Bay and Sal de Vida.
  • The higher price target and recent share price weakness means we see significant upside and upgrade our rating to ADD but we note the higher risk for AKE with a valuation dependent upon successfully delivering significant growth.

Find out more

Download full research note

If you would like more information, please contact your adviser or nearest Morgans office.

Request a call Find local branch

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.

  • Print this page
  • Copy Link