Jefferies has reported that the revision of Allkem’s project timeline continues to exhibit challenges in bringing lithium units to the market.

The brokerage firm has reduced its price target to A$14 from A$16.5 but maintains its ‘buy’ rating.

Allkem, a lithium mining company, announced an increase in capital costs for its projects earlier this week, which included the Canadian James Bay project.

According to Jefferies, Allkem’s total capital required for growth projects was revised 23% higher than forecasts.

In the short-term, Jefferies expects lithium prices to drift lower into the year end.

Out of 18 analysts, 15 rate the stock ‘buy’ or higher, while three suggest to ‘hold’; their median price target is A$17.3 according to LSEG data.

As per the latest figures, Allkem’s stock is up 3.4% this year.

Allkem (ASX:AKE) is a company dedicated to the production and distribution of lithium.