Shares of Lithium Americas Corp. (LAC) plunged by 5.25% on Thursday morning, following a price target cut by Scotiabank analysts. The investment bank lowered its price target on LAC from $3 to $2.50, citing concerns about the company's near-term prospects.

The price target reduction appears to have triggered a sell-off in LAC stock, as investors reassessed their expectations for the lithium producer. However, the decline was tempered by bullish prospects outlined in a separate analyst report, which highlighted LAC's potential for significant upside driven by increasing EV demand and higher future lithium prices.

According to the bullish report, LAC is well-positioned to benefit from the recovering lithium market, buoyed by positive developments at its Thacker Pass project and potential funding from the U.S. Department of Energy (DOE). The report notes that LAC's technical momentum is improving, with a long-term bottoming pattern and a favorable risk-reward ratio, suggesting substantial upside potential.