BMO Capital has initiated research coverage on Elevra Lithium (NASDAQ:ELVR), assigning an Outperform rating and attaching a price objective of A$12.50. The brokerage cited the company's newly consolidated position in North America following the merger that combined Sayona and Piedmont Lithium into a single entity.
In its note, BMO Capital highlighted that the merger streamlined and consolidated ownership of the North American Lithium (NAL) asset. Analyst Raj Ray pointed to the transaction as having removed a previously restrictive offtake agreement and as having strengthened Elevra's balance sheet, according to the research commentary.
Beyond corporate structure and financing, BMO Capital said Elevra provides investors with leverage to a potential rebound in lithium prices and represents meaningful growth optionality for the company. The firm framed the stock as positioned to benefit if lithium markets recover.
Separately, Elevra reported strong operating results for the second quarter of fiscal 2026, posting a record quarterly revenue figure of $66 million. The company achieved noteworthy revenue growth despite encountering operational challenges during the period.
Those operational issues prompted Elevra to revise its production guidance for the fiscal year, a move the company described as reflecting ongoing difficulties in its mining operations. Taken together, the revenue gains and the guidance revision paint a picture of a business that is generating higher top-line results even as it contends with production and operational constraints.
The BMO Capital initiation emphasizes the corporate and financial changes tied to the Sayona-Piedmont merger, while the company-issued quarterly results underline both the revenue momentum and the operational hurdles Elevra is managing. Investors and market participants will likely be watching both lithium price movements and the company's operational progress to assess how those factors affect future performance.