Should You Buy the Dip on Lithium Americas (LAC) Stock?[Stocks](https://moneymorning.com/category/article/stocks/) # Should You Buy the Dip on Lithium Americas (LAC) Stock?  by Omor IE  October 16, 2025  Share it: **Lithium Americas** ( [LAC](https://moneymorning.com/stocks/lac)) fell nearly 21% today after J.P. Morgan analyst Bill Peterson downgraded the stock from “Hold” to “Underweight”. His view is that the stock outran its fundamentals, even after accounting for the government’s investment in Lithium Americas. In fact, the analyst gave LAC a price target of just $5. It’s a 33% discount to the current price, even after the 22% decline today. However, it’s still ahead of the $3.3 price [LAC](https://moneymorning.com/stocks/) stock traded at before the government announced it was taking a 5% stake in the company, plus a separate 5% stake in its Thacker Pass lithium project.  ## **Buy or sell LAC stock now?** More analysts are becoming pessimistic after the JPM downgrade, and it’s likely that the stock could move to the $5 range if more analysts cluster their price targets around it. However, I see it as a floor price, with the upside potential well beyond $10 in the long run. The government stake in Lithium Americas is not large and not game-changing yet, but it can be expanded later. Thacker Pass has one of the largest lithium deposits globally and can support operations for at least 40 years. The government has had an interest in Lithium Americas for years, with the first multi-billion-dollar commitment in 2024. More investment is likely if the aim of this administration is to secure domestic lithium self-sufficiency. More interest rate cuts this year would also lead to more interest in electric vehicles and related investments like [LAC](https://moneymorning.com/stocks/). I’d buy the dip and wait for the price target downgrades to fade out of the headlines. [LAC](https://moneymorning.com/stocks/) stock can recover strongly long term and revisit $10 by year-end. **Beat the market, without relying on brokers or biased institutions.** Email(Required) Comments This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. You can unsubscribe at any time and we encourage you to read more about our [Privacy Policy](https://moneymorning.com/privacy/). ## One moment, please: Processing your submission ###### More Trending Stories from Money Morning - [$10,000 Invested in MercadoLibre 5 Years Ago Would Be How Much?!](https://moneymorning.com/2026/02/27/10000-invested-in-mercadolibre-5-years-ago-would-be-how-much/) - [Is a Buyout the Hope PayPal Investors Have Been Waiting For?](https://moneymorning.com/2026/02/27/is-a-buyout-the-hope-paypal-investors-have-been-waiting-for/) - [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/02/27/heres-why-acm-research-is-a-buy-despite-earnings/) - [Axon Enterprise Stuns the Market With Huge Q4 Earnings Beat](https://moneymorning.com/2026/02/27/axon-enterprise-stuns-the-market-with-huge-q4-earnings-beat/) - [Anthropic Mauls CrowdStrike Again. Here's Why the Cybersecurity Stock Is a Buy](https://moneymorning.com/2026/02/25/anthropic-mauls-crowdstrike-again-heres-why-the-cybersecurity-stock-is-a-buy/) Share it: ### Popular Articles ###### [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/03/01/why-acm-research-is-a-buy-despite-earnings/) March 1, 2026 ###### [$10,000 Invested in MercadoLibre 5 Years Ago Would Be How Much?!](https://moneymorning.com/2026/02/27/10000-invested-in-mercadolibre-5-years-ago-would-be-how-much/) February 27, 2026 ###### [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/02/27/heres-why-acm-research-is-a-buy-despite-earnings/) February 27, 2026 ###### [Axon Enterprise Stuns the Market With Huge Q4 Earnings Beat](https://moneymorning.com/2026/02/27/axon-enterprise-stuns-the-market-with-huge-q4-earnings-beat/) February 27, 2026 reCAPTCHA Recaptcha requires verification. [Privacy](https://www.google.com/intl/en/policies/privacy/) \- [Terms](https://www.google.com/intl/en/policies/terms/) protected by **reCAPTCHA** [Privacy](https://www.google.com/intl/en/policies/privacy/) \- [Terms](https://www.google.com/intl/en/policies/terms/) Notifications