Sigma Lithium Downgraded by Canaccord, Stock Plummets 14%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
Source: NASDAQ.COM
- Stock Plunge: Sigma Lithium's stock fell over 14% on Thursday, with shares trading 12.9% lower as of 11:41 a.m. ET, indicating a significant loss of investor confidence in the company's future prospects.
- Rating Downgrade: Canaccord downgraded Sigma Lithium from 'Buy' to 'Hold', reflecting concerns about the company's ability to resume operations at its Brazilian asset, which has intensified selling pressure among investors.
- Operational Halt: Following the Brazilian Labor Ministry's shutdown of three waste piles at the Grota do Cirilo asset, Sigma Lithium announced a pause in operations at Mine 1, with a projected restart in Q3 2025, creating uncertainty that unsettles investors regarding its future outlook.
- Market Reaction: Faced with numerous challenges, investors are increasingly considering removing Sigma Lithium from their portfolios in favor of lower-risk lithium stocks, highlighting a significant decline in market confidence in the company.
Analyst Views on SGML
Wall Street analysts forecast SGML stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SGML is 11.50 USD with a low forecast of 10.00 USD and a high forecast of 13.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
1 Buy
0 Hold
1 Sell
Hold
Current: 13.310
Low
10.00
Averages
11.50
High
13.00
Current: 13.310
Low
10.00
Averages
11.50
High
13.00
About SGML
Sigma Lithium Corporation is a global lithium producer dedicated to powering electric vehicle batteries with carbon-neutral, socially and environmentally sustainable chemical-grade lithium concentrate. Its 100% wholly owned Grota do Cirilo operation is a fully integrated hard-rock lithium mining and industrial beneficiation complex. The site is located in the State of Minas Gerais, Brazil. The Company operates at the forefront of environmental and social sustainability in the electric vehicle battery materials supply chain, producing Quintuple Zero Green Lithium, which consists of net-zero carbon lithium made with zero dirty power, zero potable water, zero toxic chemicals, and zero tailings dams. It produces 270,000 tons of lithium oxide concentrated on an annualized basis at its Greentech Industrial Lithium Plant. It is also engaged in constructing a second plant to double production capacity to 520,000 tons of lithium oxide concentrate.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
