Analyst Note
| Seth Goldstein, CFA |Livent reported strong first-quarter results. Adjusted EBITDA was up nearly 5 times versus the prior-year quarter, driven by higher lithium prices. We have increased our near- and medium-term outlooks for Livent amid higher lithium prices. Separately, Livent announced new long-term capacity expansions that will focus on the company's low-cost carbonate. Livent also announced it increased its stake in the Nemaska lithium project to 50% from 25%. The company also plans to build a lithium recycling facility. Having updated our model to reflect these changes, we raise our Livent fair value estimate to $35 per share from $23. Our narrow moat rating is unchanged.