ABAT Should I Buy
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American Battery Technology Co (ABAT) is not a strong buy for a beginner, long-term investor at this moment. While the company has shown significant revenue growth and promising developments in its lithium project, the recent financial performance, technical indicators, and price trend suggest caution. The stock's recent price decline and lack of strong trading signals further support a hold recommendation.
The MACD is negatively expanding, RSI is neutral at 37.021, and moving averages are converging, indicating no clear bullish signal. The stock is trading below its pivot level of 3.946, with key support at 3.641 and resistance at 4.252. The overall technical indicators suggest a bearish or neutral trend.
Alliance Global raised the price target to $7, citing the company's strong position as a critical minerals supplier and the potential of the Tonopah Flats Lithium Project.
Significant revenue growth in Q2 FY26 due to increased recycling operations.
The Tonopah Flats Lithium Project is now a Fast-41 Transparency Priority Project, expected to produce 30,000 tonnes of lithium hydroxide annually.
The company's net income, EPS, and gross margin have significantly declined YoY, indicating profitability challenges.
The stock experienced a sharp price drop of -8.92% in the regular market session.
No recent trading activity from hedge funds, insiders, or Congress, indicating a lack of strong institutional confidence.
In Q2 FY26, revenue increased by 1331.79% YoY to $5.1 million, driven by recycling operations. However, net income dropped by -30.74% YoY to -$9.28 million, EPS fell by -61.11% YoY to -$0.07, and gross margin declined by -96.24% YoY to -33.6%. Despite revenue growth, the company is struggling with profitability.
Alliance Global maintains a Buy rating and raised the price target from $6 to $7, citing the company's strong position in the U.S. critical minerals market and the potential of its lithium project.
