Analyst Note| Seth Goldstein, CFA |
Livent announced plans to issue 13 million shares of equity with the option for share underwriters to purchase an additional 1.95 million of shares at a price of $17.50. We view the deal as slightly value accretive to current share holders. However, having updated our model to incorporate the issuance, we maintain our $17 per share fair value estimate. Our narrow moat rating is also unchanged. At current prices, we view Livent as fairly valued with the stock trading in 3-star territory.