Lithium miner Lithium Americas Corp. (NYSE: LAC) has posted a share price decline of around 21% over the past 12 months, including a 12% increase for the year to date. A month ago, GM agreed to invest $650 million in the company’s Thacker Pass property in northeastern Nevada. Supplies of lithium are critical for electric vehicle makers and, for its investment, GM got exclusive access to first-phase production (40,000 metric tons per year) at Thacker Pass and the right of first offer on second-phase production (another 40,000 metric tons) at the site. Vancouver-based Lithium Americas commenced construction of the project earlier this month.

Analysts are bullish on lithium in general and Lithium Americas in particular. All 15 brokerages covering the stock have a Buy or Strong Buy rating. At a share price of around $21.00, the upside potential based on an average price target of $38.59 is nearly 84%. At the high price target of $53.89, the upside potential is about 157%.

Analysts do not expect the company to post any revenue in the fourth quarter. The adjusted loss per share is forecast at $0.25, worse than the prior quarter’s loss of $0.16 and the year-ago loss of $0.11 per share. For the full 2022 fiscal year that ended in December, the loss per share is expected to be $0.94, exactly double the year-ago loss. Full-year revenue is estimated to be $4.25 million.

Lithium Americas is expected to post revenue of $337.32 million in fiscal 2023 and $467.76 million in fiscal 2024. The enterprise value to sales multiple for 2023 is estimated at 9.1 and, for 2024, it is 6.6. The company’s 52-week range is $17.57 to $40.39, and Lithium Americas does not pay a dividend. Total shareholder return for the past year was negative 12.15%.