UBS: Despite the weak outlook, Australian lithium mining stocks still have value

Soft medium-term lithium price forecasts led UBS to downgrade stock price expectations for Australian producers including PLS and Liontown. However, UBS stated that despite the weak market sentiment, they still see value in ASX-listed lithium mining stocks due to strong valuation support. The firm noted that Liontown remains their top pick, with PMET being an attractive choice that aligns with long-term themes. UBS reiterated their buy ratings for Liontown, PMET, and IGO. They maintained a neutral rating for PLS, stating that compared to peers, the stock still appears overvalued. UBS lowered their target price for PLS by 17% to AUD 5.60 per share, and for Liontown by 7.4% to AUD 2.50 per share. The target price for IGO was reduced by 1.0% to AUD 9.65, while the target price for PMET remained unchanged at AUD 0.90.