B.Riley Starts Stardust Power Inc (SDST) at Buy

B.Riley analyst Matthew Key initiates coverage on Stardust Power Inc (NASDAQ: SDST) with a Buy rating and a price target of $12.00.

The analyst comments: "Stardust is an emerging lithium producer that went public on July 8, 2024, via a business combination with Global Partner Acquisition Corp II. The company’s flagship project is a large-scale lithium refinery located in Muskogee, Oklahoma. At a proposed capacity of 50K Mt per annum, the plant has the potential to be one of the largest lithium refineries in the U.S. Although engineering and financing for the project are still being finalized, we believe Muskogee offers strong economics and a relatively near-term development timeline, with a final investment decision expected in mid-2025 and first production expected in late 2027. Based on the shares’ current valuation, we believe the market is under-appreciating these strong economics, with SDST trading at a 32% P/NAV and an implied lithium price of $18,350/Mt. Note, we apply a 50% P/NAV discount to the project at this time, but this will be subject to revision as SDST continues to execute on key project milestones. Lastly, we view SDST as a unique investment in the lithium space due to its expected use of direct lithium extraction (DLE). In our opinion, DLE is on the cusp of gaining widespread prominence in the lithium industry, and the technology offers several environmental and economic benefits compared to conventional plays."

For an analyst ratings summary and ratings history on Stardust Power Inc click here. For more ratings news on Stardust Power Inc click here.

Shares of Stardust Power Inc closed at $7.70 yesterday.

You May Also Be Interested In