12:11 PM EDT, 04/03/2024 (MT Newswires) -- Arcadium Lithium's ( ARLTF ) capacity expansion indicates full-year volumes seeing "healthy" growth as the year advances, while 2024 is expected to be a year of cash flow neutrality, Raymond James said Wednesday.

The company started trading on the New York Stock Exchange in January following the completion of an all-stock merger of equals between Allkem and Livent.

Raymond James said it expects to see "increasing evidence" of post-merger synergies over the next few quarters, with an annualized cost synergy target of $125 million by 2027.

The firm said spot lithium pricing has stabilized following a sharp decline, adding that there are other reasons to own Arcadium Lithium ( ARLTF ) "beyond simply a commodity call."

Raymond James upgraded its rating on the stock to strong buy from outperform, with a $9 price target, according to a note.

The company's shares were up 2.4% in recent trading.

Price: 4.24, Change: +0.10, Percent Change: +2.41