Standard Lithium: Raymond James initiates coverage with Outperform rating, sets $2.75 PT.

Standard Lithium: Raymond James initiates coverage with Outperform rating, sets $2.75 PT.

Raymond James, a prominent financial research firm, has initiated coverage on Standard Lithium Ltd. (NYSE: SLI) with an Outperform rating and a price target of $2.75. The stock, currently trading at $2.73 with a market capitalization of $534 million, has shown remarkable momentum with a 100% return over the past year [1].

The research firm highlighted Standard Lithium's leadership in Direct Lithium Extraction (DLE) and its focus on advancing its lithium-brine projects portfolio in the United States. The company's flagship South West Arkansas Project (SWA), which is 55% owned by Standard Lithium and located in southern Arkansas, is described as part of a burgeoning region in the DLE space [1].

The firm also noted the 55% owned East Texas Project, which is less developed than SWA but provides investors with an additional premier project opportunity. Despite being in the development stage and with lithium currently out of favor, Raymond James expressed belief that the mineral will maintain significant market demand over the next few decades [1].

The recent surge in Standard Lithium's stock price can be attributed to the Department of Defense's acquisition of a major stake in MP Materials, a mining company operating in the U.S. The DoD is now the largest shareholder, controlling more than 15% and nearly twice that of CEO James Litinsky and BlackRock Advisors. This deal has boosted investor confidence and led to today's rise in Standard Lithium stock [2].

However, it is essential to note that Standard Lithium remains speculative, given its pre-revenue status and Canadian ownership. There are no guarantees that the Pentagon will follow up with more deals, and even if it does, there is no guarantee that Standard Lithium would be one of the company's choices. The company's Arkansas project was designated as a "Priority Transparency Critical Mineral Project" in the Trump administration's executive order, indicating favorable consideration by the administration [2].

In conclusion, Raymond James' Outperform rating and price target of $2.75 reflect the firm's positive outlook on Standard Lithium's potential in the lithium market. However, investors should approach this opportunity with caution, considering the company's speculative nature and the uncertainty surrounding its future prospects.

References:
[1] https://www.investing.com/news/analyst-ratings/raymond-james-initiates-standard-lithium-stock-with-outperform-rating-93CH-4130955
[2] https://www.fool.com/investing/2025/07/10/why-standard-lithium-stock-is-soaring-today/