BMO Capital raised its price target on Lithium Americas Corp. (NYSE: LAC) to $5.00 from $3.50 while keeping a Market Perform rating.

The firm cited confirmation that the U.S. Department of Energy would receive free equity stakes in Thacker Pass and LAC in exchange for loan repayment deferrals, which lowered its 10% NAV estimate to about $3.40 per share.

BMO noted that high-quality, funded developers in scarce commodities could trade at 1.0-1.5x NAV. The firm's increased price target reflected the high end of that valuation range, supported by Lithium Americas' rising media profile.

However, analysts flagged risks including potential capital expenditure inflation, operating cost challenges, and reliance on assumptions of $16,000 per ton lithium carbonate equivalent (LCE) prices in 2028, compared to spot prices near $10,000 per ton.