BofA Securities Asserts Sigma Lithium Corporation (SGML)'s 'Buy' Rating on Spodumene Market Opportunity

Sigma Lithium Corporation (NASDAQ:SGML) is one of the top lithium stocks to buy now. On August 26, BofA Securities initiated coverage of the stock with a “Buy” rating and a $12 price target. The research firm resumed coverage, impressed by improvements in the spodumene market.

BofA Securities expects significant improvements in the spodumene market in the second half of the year, which Sigma Lithium will capitalize on. The is a crucial part of the lithium supply chain, driven by increasing demand for electric vehicle (EV) batteries.

The research firm also expects CATL’s production cuts to have a positive impact on lithium prices, which will benefit Sigma Lithium. Although the company is not yet profitable, expectations are high that it will achieve profitability by the end of the year.

Sigma Lithium Corporation (NASDAQ:SGML) produces and sells high-purity, environmentally sustainable lithium concentrate from its integrated hard-rock mine and beneficiation complex in Minas Gerais, Brazil, to power electric vehicle (EV) batteries.

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Disclosure: None. This article is originally published at Insider Monkey.