What happened
Markets seem to be on the verge of ending the week on a positive note. With regards to Atlas Lithium (ATLX 2.93%), however, there's little doubt that shares will end this week considerably higher than where they began. Investors are especially charged up about this lithium stock after the company announced positive metallurgical testing results, and an analyst provided an upwardly revised price target.
As of 2:21 p.m. ET, shares of Atlas Lithium are up 28.8% since the end of last Friday's trading session, according to data provided by S&P Global Market Intelligence. Shares of Atlas Lithium fell 16.2% in March.
So what
On Monday, Atlas Lithium reported that metallurgical testing on an ore sample from the company's Neves project exceeded targets. While the company had set a lithium oxide concentration grading target of 6% with less than 1% of ferric oxide, the test results revealed a lithium oxide concentration grading of 6.04% with 0.53% of ferric oxide. Located in Minas Gerais, Brazil, the Neves project is one of several resources that Atlas Lithium owns in the region.
Based on the company's encouraging test results -- and the expectation that similarly positive news will follow -- Joe Reagor, an analyst at Roth MKM, lifted the price target on the company's stock to $40 from $23 and maintained a buy rating. The new price target implies upside of 47% above the stock's closing price of $27.21 from last Friday.
Now what
In the pre-revenue phase of its development, Atlas Lithium still has many obstacles to overcome before it's producing lithium and generating sales. For growth investors seeking exposure to battery metals, Atlas Lithium may be a stock digging further into. For more conservative investors, however, there are still plenty of other lithium-oriented companies to consider.
