Lithium Argentina shares surge 5.32% in pre-market trading as investor confidence builds ahead of session open.

Lithium Argentina shares surged 5.3191% in pre-market trading on December 19, 2025, signaling investor confidence ahead of the session's open.

A valuation analysis suggests the stock is trading below its estimated intrinsic value of CA$8.87, based on a two-stage discounted cash flow model. The current price of CA$6.50 implies a 27% undervaluation, while an analyst price target of US$10.48 indicates potential upside beyond this baseline. The model incorporates projected free cash flows through 2035, with growth rates declining steadily over time and a terminal value discounting to US$805 million at a 7.9% equity cost.

Strengths highlighted in the analysis include strong debt coverage by earnings and insider buying activity, while opportunities center on forecasted loss reductions and undervaluation metrics. Risks include limited cash runway (less than three years) and debt not fully supported by operating cash flow.

The pre-market rally may reflect optimism around these valuation dynamics and operational improvements, though execution risks remain given the company’s short-term liquidity constraints.