Analyst Note| Seth Goldstein, CFA |
Livent reported strong second-quarter results. Adjusted EBITDA soared 150% year on year versus the prior-year quarter on higher lithium prices and volumes. We have increased our near-term outlook for lithium profits, driven by higher prices as Livent should benefit from higher lithium spot prices in the second half of the year. Separately, we have increased our effective tax rate forecast to incorporate our assumptions for a higher U.S. corporate tax rate. After incorporating these changes, we are raising our Livent fair value estimate to $19 per share from $18. Our narrow moat rating is unchanged.