Analysts at Citi have lowered their price target for Australia’s Core Lithium (ASX:CXO) to A$0.40 per share from A$0.50, while maintaining a ‘sell’ rating.

The stock emerged as the biggest loser in the benchmark, plummeting by as much as 25.7% to A$0.405.

This is the biggest intraday percentage loss for the shares since March 13, 2020.

The shares suffered losses for the fourth consecutive day and hit a two-year low.

The company announced plans on Wednesday to raise approximately A$100 million to A$120 million, which represents a 27% discount.

The brokerage expressed surprise at the timing of the equity raising and questioned the outlook for the performance of the company’s Finniss lithium project.

Citi revised its model valuation estimates for the company after indicating that Core Lithium is dealing with more ramp-up challenges than other lithium producers.

The estimates include an EPS dilution in FY24 of 12% and 13% in FY25.

As of the last close, the stock has decreased 46.8% this year.

Core Lithium (ASX:CXO) is an Australian mining company that is primarily engaged in lithium exploration and production projects.