Analyst Note| Seth Goldstein, CFA |
On Nov. 3, Lithium Americas announced that it plans to separate the company into two distinct businesses based on geography by spinning off its North American assets. After reviewing the deal, we see no reason to change to our forecast. We therefore maintain our fair value estimate $65 (CAD 88) and no-moat rating. At current prices, we view shares of Lithium Americas as severely undervalued, trading more than 60% below our fair value estimate.