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Livent Corp LTHM

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

We Are in Favor of Livent's Move to Issuance Shares to Fund Capacity Expansion Plans and Reduce Debt

Seth Goldstein, CFA Senior Equity Analyst

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.

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Company Profile

Business Description

Livent is a pure-play lithium producer formed when FMC spun off its lithium business in October 2018. Livent should benefit from increased lithium demand via higher electric vehicle adoption, as lithium is a key component of EV batteries. The company's low-cost lithium carbonate production comes from brine resources in Argentina. Livent also operates downstream lithium hydroxide conversion plants in the United States and China and has a 25% stake in a fully integrated Canadian lithium project.

Contact
2929 Walnut Street
Philadelphia, PA, 19104
T +1 215 299-5900
Sector Basic Materials
Industry Specialty Chemicals
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Distressed
Employees 906

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